Achieve continuous growth with sustainable superior profits · the creation of a safe, secure, and...
Transcript of Achieve continuous growth with sustainable superior profits · the creation of a safe, secure, and...
Notes regarding use of forecasts and other forward-looking informationThe business forecasts mentioned above are based on recent information and reasonable judgments made with available information. The reader should be aware that these projections are not promises, and actual results may be materially different from these projections due to known or unknown risks, changes related to uncertainties, and other factors.
Achieve continuous growth with sustainable superior profits through innovation using all knowledge of all parties
Company Vision
1. Make energetic organization synthesizing the knowledge of all employees
2. Capture growth drivers through innovation3. Be a leader in the global market4. Contribute to the creation of a society that is friendly to
people and the Earth as a good corporate citizen
Company Policy
Contribute to the development of a safe, secure, and prosper-ous global society by offering Original & High Level products and services with sincerity, harmony, and enthusiasm
Company Philosophy
L About This ReportIn 2015, Anritsu Corporation marked the 120th anniversary of its founding. Over this period, Anritsu has contributed to the development of the
telecommunications field through its wireline and wireless communications equipment as well as its test and measurement devices. The source
of the strength that has sustained Anritsu’s corporate activities over 120 years has been the two strong strands of DNA that run through the
Company and may be expressed as “Sincerity, Harmony, and Enthusiasm” and “Original & High Level.”
This report has been prepared to help our stakeholders understand these two strands of DNA. As an integrated report, this publication pres-
ents information on financial factors, including financial performance and corporate strategy, and non-financial factors, such as information on
environmental and social matters in an integrated fashion.
Looking ahead, we will manage Anritsu with a strong sense of purpose and, through our main business activities, will aim to contribute to
the creation of a safe, secure, and prosperous global society.
1. For information on facts and other information that have a material impact on the Anritsu organization’s capabilities for creating corporate
value in the short, mid, and long terms, please refer to the Review of Operations section of this report (beginning on page 14) or our
Website: http://www.anritsu.com/ir
2. In preparing this report, we have made reference to international reporting frameworks, including those provided by the International
Integrated Reporting Council (IIRC) and others as well as the G4 Sustainability Reporting Guidelines (Version 4) of the Global Reporting
Initiative (GRI).
Company Philosophy and Mission
Contents
1 Directors
2 Anritsu’s Value Creation Model
4 Message from the Group CEO
10 Anritsu at a Glance
12 Message from the CFO
14 Review of Operations L Test and Measurement L Industrial Automation
20 R&D
22 Corporate Governance
26 Corporate Social Responsibility (CSR) Management
32 11-Year Summary of Selected Financial•Nonfinancial Data
34 Management’s Discussion and Analysis
44 Consolidated Statement of Financial Position
45 Consolidated Statement of Profit or Loss and Other Comprehensive Income
46 Consolidated Statement of Changes in Equity
47 Consolidated Statement of Cash Flows
48 Glossary
49 Investor Information
Supporter of the UN Global Compact
Anritsu is actively responding to the requirements of global society through its
business activities.
In March 2006, Anritsu declared its support of the 10 principles of the UN
Global Compact (UN-GC), which are grouped in four categories: Human Rights,
Labor, Environment, and Anti-Corruption. The Anritsu Group as a whole inte-
grates these principles into its CSR activities.
Promotion of CSR Management: http://www.anritsu.com/csr
Based on its Company Philosophy, which is expressed as “Sincerity, Harmony, and
Enthusiasm” and “Original & High Level,” Anritsu promotes communication with
its stakeholders as regards social issues relating to the economy, society, and the
natural environment, and takes initiatives to address these issues in its main busi-
ness. Our principal activities are presented on our Website as CSR (sustainability)
promotion activities.
Our Other Disclosure Publications: http://www.anritsu.com/ir
• Financial Information
• Securities Reports, Quarterly Financial Reports, Internal Control Reports
• Mid-term Business Plan, Business Briefings
• Business Reports • Information for the General Meeting of Shareholders
• Other Information
Director (Audit Committee member)
Tomoyuki Kikugawa
Outside Director (Audit Committee member)
Takaya Seki
Outside Director
Sachiko Ichikawa
Outside Director
Teruaki Aoki
Outside Director
Takashi Sano
Outside Director (Audit Committee member)
Yuji Inoue
Director
Toshisumi Taniai
Representative Director
Kenji Tanaka
Representative Director, President
Hirokazu Hashimoto
Director
Fumihiro Tsukasa
Director
Akifumi Kubota
L Directors
2015 Sustainability Report
Anritsu Integrated Reporting 2015 1
Continuous Growth with Sustainable Superior Profits
1900 1950 1975 2000
Financialcapital
Over 120 years—Building our brand through innovation and earning trust as well as creating cutting-edge core technologies (Telecommunications, test
and measurement, high
frequency transmission, fiber
optics, and sensors)
Expanding our management resources and customer support system to the global market
Stable financial base to deal with changes in the operating environment
Promoting Communications
• Management with awareness of the cost of capital• Management for improving ROE and ACE (Original Anritsu KPI
for increasing corporate value)
• Adoption of International Financial Reporting Standards (IFRS)
Manufacturedcapital
• Global supply chain system• Realize stable global procurement and production systems
through partnership with business associates
• Create risk management systems for the overall value chain
• Global development of service and support centers with close ties to the local regions of our customers
• Environmental management through life-cycle thinking• Environmental management in the global organization
• Realization of high environmental efficiency and performance
• Implementation of life-cycle assessment in all product development
• Fusion of global and local team management• Corporate governance system that contributes to increasing
corporate value
• Professional human resources around the globe
• High level of compliance awareness and satisfaction among employees and customers
Humancapital
• 120 years of accumulated knowledge and innovation• R&D system with centers in Japan, the United States, Europe,
and Asia
• Global customer support systems
• Management systems for quality, safety, and the environment
Intellectualcapital
• CSR management awarded as “A Sincere Corporation”• The Anritsu Group’s Corporate Behavior Charter and Code
of Conduct
• Trust in the Anritsu brand
• Partnering with our customers
Social andrelationship
capital
Naturalcapital
Original & High Level
Sincerity, Harmony,and Enthusiasm
MOBILE
Industrial automation
NETWORK INFRASTRUCTURE
ELECTRONICS
Evaluation of electronic devices that support daily life
Trust
Advancedcapabilities Innovative
CompanyPhilosophy
VISION2020
Sources of Anritsu value Anritsu’s corporate mission Anritsu’s strengthsAnritsu’s businesses contribute
to society and stakeholders
Increasingcorporate value
Wireless communications~Mobile measurement
Japan “firsts” and world “firsts” that changed society
Wireline communications~Network Infrastructure Measurement
Contributed to ongoing developmentof smartphone terminals
Supporting wireline and wireless infrastructure
Contributing to Build a Safe, Secure, and Comfortable Society
Maintaining Harmony with the Global Socio-Economy
Promoting Global Environmental Protection
Information and communications
services and devices
Business Origination
Realized broadband services
Building the society of the future through
innovation
Support safety and security in the food
product business through devices to
detect foreign matter
Test and Measurementbusiness
Supporting broadband services
Anritsu’s Value Creation Model
120 Years of History
TYK-type wireless telephonesBecame pioneer in commercializing wireless telephone sets, thus contributing to making safe navigation through Ise Bay possible
Radio receiversJapan’s first radio receiver
Automatic public telephone unitThe first public telephone installed in Japan
Measuring devices for all tests in mobile device developmentPDC terminal measuring devices contribut-ed to spreading digital mobiles in Japan
Bit error testerFeatured fastest error detection in the world, thus contributing to the stability of communications
Optical fiber damage inspection equipmentSearches for damage to optical fiber and supports communications security
Quality assurance for microwave tele-communications equipmentContributed to the installation of NTT’s micro-wave systems linking Tokyo and Osaka
TV broadcasting equipmentDeveloped TV broadcasting equipment in response to requests from Japan’s father of TV, Dr. Kenjiro Takayanagi
Semiconductor laserBegan in-house development of key devices to support the coming age of optical communications
Signaling testerContributed to realization of the third-gen-eration mobile virtual network and the rapid spread of service area
Cable loss testerWorld’s first handheld measurement device for maintenance and manage-ment of wireless networks
Quality assurance for optical com-munications equipmentContributed to the spread of ultra-high-speed Internet and broadband commu-nications
2 ANRITSU CORPORATION
Continuous Growth with Sustainable Superior Profits
1900 1950 1975 2000
Financialcapital
Over 120 years—Building our brand through innovation and earning trust as well as creating cutting-edge core technologies (Telecommunications, test
and measurement, high
frequency transmission, fiber
optics, and sensors)
Expanding our management resources and customer support system to the global market
Stable financial base to deal with changes in the operating environment
Promoting Communications
• Management with awareness of the cost of capital• Management for improving ROE and ACE (Original Anritsu KPI
for increasing corporate value)
• Adoption of International Financial Reporting Standards (IFRS)
Manufacturedcapital
• Global supply chain system• Realize stable global procurement and production systems
through partnership with business associates
• Create risk management systems for the overall value chain
• Global development of service and support centers with close ties to the local regions of our customers
• Environmental management through life-cycle thinking• Environmental management in the global organization
• Realization of high environmental efficiency and performance
• Implementation of life-cycle assessment in all product development
• Fusion of global and local team management• Corporate governance system that contributes to increasing
corporate value
• Professional human resources around the globe
• High level of compliance awareness and satisfaction among employees and customers
Humancapital
• 120 years of accumulated knowledge and innovation• R&D system with centers in Japan, the United States, Europe,
and Asia
• Global customer support systems
• Management systems for quality, safety, and the environment
Intellectualcapital
• CSR management awarded as “A Sincere Corporation”• The Anritsu Group’s Corporate Behavior Charter and Code
of Conduct
• Trust in the Anritsu brand
• Partnering with our customers
Social andrelationship
capital
Naturalcapital
Original & High Level
Sincerity, Harmony,and Enthusiasm
MOBILE
Industrial automation
NETWORK INFRASTRUCTURE
ELECTRONICS
Evaluation of electronic devices that support daily life
Trust
Advancedcapabilities Innovative
CompanyPhilosophy
VISION2020
Sources of Anritsu value Anritsu’s corporate mission Anritsu’s strengthsAnritsu’s businesses contribute
to society and stakeholders
Increasingcorporate value
Wireless communications~Mobile measurement
Japan “firsts” and world “firsts” that changed society
Wireline communications~Network Infrastructure Measurement
Contributed to ongoing developmentof smartphone terminals
Supporting wireline and wireless infrastructure
Contributing to Build a Safe, Secure, and Comfortable Society
Maintaining Harmony with the Global Socio-Economy
Promoting Global Environmental Protection
Information and communications
services and devices
Business Origination
Realized broadband services
Building the society of the future through
innovation
Support safety and security in the food
product business through devices to
detect foreign matter
Test and Measurementbusiness
Supporting broadband services
Anritsu Integrated Reporting 2015 3
Message from the Group CEO
Hirokazu HashimotoPresident and Group CEO
How Anritsu will Achieve “Continuous Growth with Sustainable Superior Profits”
For over 120 years, Anritsu has often made history in the fields of information and communications, con-
sistently demonstrating its value to society. We have done so by emphasizing two objectives. The first is
to create value through leading-edge solutions that meet the needs both of our customers and society
overall. We are also dedicated to innovating new businesses by thoroughly assessing our core technolo-
gies from a wide variety of perspectives, sharpening our competitive edge in the process.
The cornerstone of our commitment to leading-edge solutions and innovation is our Corporate
Philosophy of “Sincerity, Harmony, and Enthusiasm.” In other words, as part of our corporate DNA, we
place top priority on trustworthiness in all our undertakings, on ongoing engagement with stakeholders,
and on meaningful initiatives that fulfill our responsibilities to society. Going forward, we will rededicate
ourselves to taking the steps necessary to achieve our goals of “Continuous Growth with Sustainable
Superior Profits.”
To be sure, achieving our goal of becoming the “Global Market Leader” means we have many tasks to
accomplish. We will both continue to refine our original, core business model developed since our found-
ing and to renew our commitment to innovation that contributes to the realization of a safe, secure, and
prosperous global society.
4 ANRITSU CORPORATION
ACE
¥2.4 billion
Management Performance in Fiscal 2014Turning to performance in fiscal 2014, ended March 31,
2015, orders for the Anritsu Group were ¥101.1 billion, rep-
resenting a 3% decrease from the previous fiscal year.
Revenues declined 3%, to ¥98.8 billion, with operating profit
down 23%, to ¥10.9 billion. The main factors behind these
results were an increase in our investments to expand busi-
ness in growing global markets, and costs associated with
responding to overseas customers in both our Test and
Measurement and Industrial Automation businesses.
Notably, at the end of fiscal 2014, the backlog of orders
for the Group as a whole increased 13% over the previous
fiscal year-end to reach ¥19.7 billion. In our Test and
Measurement segment, orders rose 7% to ¥15.5 billion.
Overall, from the final quarter of fiscal 2014, orders across all
of our businesses indicated a clear recovery trend.
Results under the GLP2014 Mid-term Business PlanThe businesses of our Group are facing dramatic transforma-
tions in the environment. The mobile market, for example,
saw significant changes after growing rapidly between 2012
and 2014. As mobile terminals underwent a sudden shift
towards enhanced functionality and general-purpose config-
urations, competition among industry participants intensi-
fied, resulting not only in new business alliances, but also
exits from the sector. Amid uncertainties in the investment
plans of our customers, we succeeded in capturing market
Operating profit margin
11%
ROE
10.2%
Dividend payout ratio
43.1%
Debt rating
A-(R&I)
Percentage of women in key global managerial positions
44%
Energy usage(25% reduction from 2005)
25% reduction
Cumulative registration of eco- excellent products
32 types
Review of Mid-term Business Plan (GLP2014) (FY2012–FY2014)Revenue (Billions of yen) Operating Profit (Billions of yen)
2013/3 2014/3 2015/3 GLP20142015/3(Plan)
120
40
0
60
80
100
40
0
10
20
20
30
71.2
15.7
14.4
9.094.7
76.0
14.1
16.9
9.0101.9
73.4
10.9
16.2
9.298.8
80.0
19.0
18.0
12.0
110.0
T&M
OperatingProfit
(Consolidated)
OperatingProfit
(Consolidated)
IndustrialAuto
Other
Revenue
Note: ACE is Anritsu’s original key performance indicator (KPI): Operating income after tax minus capital cost. Eco-excellent products meet Anritsu’s original guidelines for eco-friendly products.
Anritsu Integrated Reporting 2015 5
share by proactively introducing new test and measurement
systems to support our customers’ advanced development
projects and by offering state-of-the-art solutions to manu-
facturers seeking productivity improvements.
In our Industrial Automation business, we strengthened
our local production systems and sales support capabilities
and also took other steps to proactively support forecast
business expansion overseas. As a result of these measures,
the ratio of sales of Industrial Automation business in total
overseas sales grew from 30% in fiscal 2011 to 40% in fiscal
2014.
To drive our GLP2014 Mid-term Business Plan, I have
whole-heartedly encouraged Anritsu management and other
team members to pay special attention to our dual “G” con-
cepts of “Growth” and “Global”. We are targeting growth
to become market leaders who can continue to create real
value for society. And to sustain profitable growth, our global
strategy offers access to opportunities spanning new product
development, sound profit structures, and global manage-
ment resources. We can surely tap into additional growth
opportunities worldwide by quickly adapting our regional
business portfolios in response to the changes in the interna-
tional strategies of our customers.
Since fiscal 2013, with our Business Originating Center at
the core, we have been embarking on a range of market
research and business planning activities, such as identifying
and developing new business partners as well as forming
new business alliances. Including the development of new
products, over the past three years we have made clear prog-
ress via these initiatives and are thus well prepared to transi-
tion to our next GLP2017 Mid-term Business Plan.
2020 VISION and Our GLP2017 Mid-term Business PlanThe two goals of our 2020 VISION long-term management
vision are, firstly, “to be a global market leader” and, second,
“to originate new businesses.”
Our GLP2017 Mid-term Business Plan, covering the fiscal
years 2015 to 2017, will serve as an important milestone in
realizing our long-term vision. During this time frame, our
fundamental medium- to long-term strategy will be to accu-
rately identify growth drivers, and consequentially to achieve
sustainability in terms of business growth and superior levels
of profitability.
The growth driver for the Test and Measurement business
is “expanding and innovating in the broadband field.”
Indeed, beyond mobile communications connecting people
with each another, the “Internet of Things (IoT)” is a world
where anything embedded with connectivity can exchange
data over the Internet. With this in mind, we have reaffirmed
our commitment to capturing new business opportunities
related to the development of communications technologies
underpinning IoT.
2020 VISION and GLP2017
To be global market leader Create new business by emerging business
P Create uniquely Anritsu-like corporate valueP Build a world-class, strong, profit-generating
platform
P Demonstrate cutting-edge technology in new business fields
120-yearanniversary
6 ANRITSU CORPORATION
Message from the Group CEO
The growth driver for the Industrial Automation business is
“increasing safety, security, and health.” With the food prod-
uct and pharmaceutical-related markets as our focus, our
policy will be to further accelerate the expansion of sales in
overseas markets where growth is expected.
In both the Test and Measurement and Industrial
Automation businesses, there are sectors where we antici-
pate double-digit growth well beyond the annual growth of
between 3% and 5% is forecast for the market overall.
We will target such high-growth businesses by fully utiliz-
ing our competitive advantages. Specifically, we will aim to
ensure 7% year-on-year growth in revenue, surpassing the
growth of the market as a whole. Further, over the mid-to-
long term our goal is to achieve an operating profit ratio of
18% and ROE of 15%. During the three years of the
GLP2017 Mid-term Business Plan, 2015 is the year for plant-
ing seeds, with the potential for growth recovery foreseen
for the latter half of 2016. In fiscal 2017, the final year of the
plan, our targets are revenues of ¥120 billion, operating
profit of ¥17 billion, and an operating profit ratio of 14%.
Business Strategy for Attaining GLP2017 ObjectivesLet me now outline our business strategies in concrete terms
and explain how we intend to attain the objectives we set in
GLP2017.
In the test and measurement market, we will win global
business by providing high-value-added solutions as we work
to secure our position as the global market leader. Growth
opportunities clearly abound. Indeed, technological progress
seems almost limitless when it comes to realizing a
broadband environment that will make real contributions by
assuring “a safe, secure, and comfortable society, always and
everywhere.” We are in fact seeing major growth opportuni-
ties in our mobile business, including mobile terminal testing
and measurement, and in the network infrastructure busi-
ness, where testing and measurement of wireless infrastruc-
ture are critical.
Our mobile business is in fact poised for expansion. While
mobile communications currently link people, going forward
services will broaden to link various devices and equipment.
The LTE system will evolve into the LTE-Advanced system, and
further growth is forecast with the utilization of 5G systems
scheduled to go into commercial use in 2020.
The approaching 5G era will feature faster and higher vol-
ume communications systems. For example, automated cars
will offer substantially greater agility of control, contributing
to a safer and more secure society. In the medical field, the
advent of remote medical treatment systems utilizing
high-precision 3D data will reduce interregional differences in
medical care. Doctors will be able to make use of vast
amounts of genome data to treat diseases that have so far
been difficult to cure and to contribute to improved patient
health outcomes overall.
In addition, 5G technology will make possible the develop-
ment of robust communications systems that can withstand
major earthquakes, tsunami, and typhoons, and other natu-
ral disasters. To cope with this expansion in the scope of
applications, networks will evolve to cover wider geographi-
cal areas, realize faster transmission speeds, and achieve
Mid- and Long-term Management Basic StrategyCapture growth drivers without fail, and realize “continuous profitable growth”
Market average annual growth
rateGrowth driver
Target
Sales growth rate
Operating margin
T&M 3–5%
Broadband expansion and innovation(1) IoT (M2M)(2) LTE-Advanced, 5G, Connectivity(3) New base station network
7% 20%
Industrial Auto 3–5%Improvement of safety, security, and health Solutions with X-ray for quality assurance 7% 12%
Consolidated — — — 18%
ROE — — 15%
Anritsu Integrated Reporting 2015 7
transmission “immediacy” (zero delays), all of which means
we must continue to innovate to surpass current solutions.
We can all take pride in the fact that Anritsu is the
recognized global market leader in the mobile Test and
Measurement business. While maintaining this leadership
position, we will also continue to pioneer developing new
businesses with new industry growth drivers beyond the
telecommunications field.
In the network infrastructure business, we must both
provide quality assurance and focus on the quality of the
customer experience, while also offering innovations in the
optimization and improved efficiency of network construc-
tion and maintenance. In fact, Anritsu is the only company in
the test and measurement field that has continued to offer
solutions for both wireless and wired line telecommunica-
tions. This strength will be a driving force for our growth
over the next three year period. To proactively address the
requirements of new customers, we will draw on our advan-
tages in optical fiber and wireless test and measurement
technology as well as our track record and client base assets
as the leading supplier of wireless test and measurement
equipment.
Next, I would like to talk about our goals for boosting the
profitability in the Test and Measurement business. Our strat-
egy for improving gross profit is to expand our offerings of
high-value-added solutions and services. In addition, we are
introducing innovations into our business processes, includ-
ing detailed project management, selective investments in
strategic cost items, and thoroughgoing emphasis on improv-
ing management using individual key performance indicators
(KPIs).
In the Industrial Automation business, we will utilize the
position we have achieved as a top player in Japan’s cutting-
edge market and work to expand our market share in the
North American and Asian markets, which are forecast to
grow to become huge markets. Our long-term target is to
raise the overseas sales revenue ratio to 50% and broaden
the range of our overseas resources.
Further Augmenting Corporate GovernanceWhile developing a corporate governance framework is
important, assuring it effectively functions is more critical.
After structuring an outstanding governance framework,
actual results will hinge on how well it operates. I believe key
success factors are to engage in dialogue with shareholders,
investors, as well as a range of other stakeholders and to
demonstrate transparency of management.
To be sure, such measures alone are insufficient to boost
corporate value. The key to corporate success is wise strate-
gic decision making. I am convinced that the Board of
Directors must include a mix of both internal and Outside
Directors who can thoughtfully make the really tough
decisions. It is vital that we do several things: We must
go beyond the accepted wisdom of our industry, invite to
become directors those with expertise and career experience
outside of Anritsu, encourage external directors to proactive-
ly offer creative and objective opinions on management and
strategy, and thereby facilitate substantive debate with those
within Anritsu.
As part of its corporate governance, and to provide gover-
nance that is transparent from an international perspective,
GLP2017: Revenue and Operating Profit PlanRevenue (Billions of yen) Operating Profit (Billions of yen)
180
40
0
60
80
160
140
120
100
40
0
10
20
20
30
2015/3(Results)
2016/3(Plan)
2018/3(Plan)
2021/3(Plan)
73.4
10.9
16.29.2
98.8
75.0
11.0
18.010.0
103.0
90.017.0
20.0
10.0120.0
115.0
29.025.0
20.0
160.0
T&M
IndustrialAuto
Other
Revenue
OperatingProfit
(Consolidated)
OperatingProfit
(Consolidated)
8 ANRITSU CORPORATION
Message from the Group CEO
Anritsu made the transition from a company with an Audit &
Supervisory Board to one with an Audit Committee. Our
goals are to raise the ratio of Outside Directors, assure great-
er management accountability, and stimulate discussions that
take account of the shareholders’ perspective. Auditors have
been given voting privileges within the Board of Directors as
members of the Audit Committee, and the audit functions of
the Board of Directors have been strengthened.
Financial Strategy and Increasing Shareholder ValueOur financial strategy for realizing our objective of attaining
“Continuous Growth with Sustainable Superior Profits” com-
prises the following three summary points.
(1) We will take steps to increase return on capital and cor-
porate value as we expand returns to shareholders.
(2) We will give priority to using cash for strategic invest-
ments that produce growth.
(3) We will continue to bolster our financial position, raising
our ratio of shareholders’ equity to total assets to between
60% and 70% and maintaining a debt rating of A- or higher.
In particular, we will aim to increase our ACE*, which is
our original indicator expressing corporate value and is
defined as operating profit after taxes minus capital cost.
Consequently, we will be able to improve our ROE and to be
responsive to the expectations of our shareholders and inves-
tors. The Anritsu Group will continue to work not only to
raise its corporate value and shareholder value, but also to
operate as a company that is indispensable to society. Finally,
we wish to take this opportunity to express our sincere
thanks to our shareholders for their steadfast understanding
and support.
* ACE (Anritsu Capital-cost Evaluation)=Operating profit after tax - Capital cost
—The Anritsu Promise—As well as sharing our dream and vision
with our customers, it shows that our dedication to innovation will lead to tangible results
that exceed their expectations.This is the commitment that
“envision : ensure” symbolizes.
Dividends Per Share/Outlook for Dividends(%) (Yen)
60
0
40
20
50
30
10
40
30
20
10
2013/3 2014/3 2015/3 2016(Forecast)
20 20
43.1%
0
20.3%
24 24
30.8%
42.1%
Dividends per share
Dividend payout ratio
Total payout ratio
Over the three years from fiscal 2013/3 to fiscal 2015/3, the total payout ratio was 45.4%. (Including share buybacks of ¥5.0 billion)
Anritsu Integrated Reporting 2015 9
Anritsu at a Glance
Revenue/Operating Profit (Loss)
Sectors and Solutions Main Customers
Test and Measurement
(Billions of yen) (Billions of yen)
Mobile Market • R&D related to mobile telecommunications standards, such as LTE,
LTE-Advanced, etc.• R&D related to telecommunications chipsets (communications
semiconductors incorporated in smartphones, etc.)• R&D and manufacturing of such mobile communications terminals
as smartphones and tablets
Network Infrastructure Market• R&D related to optical/digital telecommunications• R&D and manufacturing of telecom equipment• Construction/maintenance of optical fiber telecom networks• Construction/maintenance of wireless base stations• Network quality assurance (failure monitoring)
Electronics Market• General-purpose measurement for a wide array of fields• R&D and manufacturing of telecommunications-related
electronic components• R&D and manufacturing of telecommunications equipment• R&D and manufacturing of wireless base stations• R&D and manufacturing of products related to digital household
appliances and car electronics, etc.
• Smartphone/tablet manufacturers• EMS (electronics manufacturing
service)• Chipset manufacturers• IT-related service providers• Telecom operators
• Telecom operators• Telecom network construction
companies• Telecom equipment manufacturers
• Electronic device/component manufacturers
• Telecommunications equipment manufacturers
• Mobile handset manufacturers• Electronic equipment manufactur-
ers
80
60
20
40
16
12
8
4
2011(March 31) 2012 2013 2014 2015 2016(Forecast)
0 0
L Revenue (Left scale) L Operating Profit (Right scale)
Industrial Automation(Billions of yen) (Billions of yen)
20
10
5
10
1.6
1.2
0.8
0.4
02011 2012 2013 2014 2015 2016
(Forecast)
0(March 31)
Contaminant Detectors• Contaminant detection and shape inspection
Weighers, Checkweighers• Weighing, checkweighing, and package inspection
• Food producers (agricultural products, meat processing, processed foods)
• Pharmaceuticals/Cosmetics makers (pills, capsules, liquids, patches)
L Revenue (Left scale) L Operating Profit (Right scale)
Others(Billions of yen) (Billions of yen)
15
10
0
5
1.5
1.0
0.5
0
-0.52011 2012 2013 2014 2015 2016
(Forecast)(March 31)
Information and Communications• Monitoring and control systems related to such public
infrastructure as rivers, water supply facilities, etc.• Bandwidth controllers for high-quality networks, such as those
for financial systems, video distribution, etc.
Devices• Optical/ultra-high-speed devices for optical communications
networks and telecommunications equipment
• Public sector (central and local government units)
• Financial institutions• Video distribution companies
• Electrical equipment manufactur-ers
• Telecommunications equipment manufacturers
L Revenue (Left scale) L Operating Profit (Loss) (Right scale)
Notes: 1. Figures for Others include eliminations and corporate. 2. The classification of the precision measurement business was changed from Others to Industrial Automation from the fiscal year ended March 31, 2012. 3. Beginning the fiscal year ended March 31, 2013, the Information and Communications business is included in the Others segment, and has been retroactively included in this
segment for the fiscal year ended March 31, 2012 figures. 4. Figures for the fiscal year ended March 31, 2012 and thereafter are based on IFRS.
Revenue by Business Segment
(Fiscal year ended March 31, 2015)
Test and Measurement
74.3%Industrial
Automation
16.4%
Others 9.3%
Americas
24.7%
Asia and Others
31.8%
EMEA
16.1%
Japan
27.4%
Revenue by Region
(Fiscal year ended March 31, 2015)
10 ANRITSU CORPORATION
Responding to Society’s Needs for Advanced and Innovative TelecommunicationsAiming for further advances in telecommunications systems that can be used anytime and anywhere
Anritsu participated in the development of
international standards for 3G mobile
phones and became the first in the world to
develop virtual base station simulators. With
our base in technology we developed and
our resulting customer base, we are contrib-
uting to the development research in
next-generation LTE standards and LTE-
Advanced systems.
Anritsu offers test and measurement solu-
tions. These include the simultaneous test-
ing of multiple terminals as well as wireless
sending and receiving tests. They also
include simultaneous measurement of mul-
tiple wireless devices with a single measur-
ing device and support the development of
higher-quality terminals and increases in
productivity.
To respond to mobile needs in the construc-
tion and maintenance of networks, Anritsu
became the first in the world to develop
compact measuring devices. These contrib-
ute to repair work and expansion on mobile
broadband networks, which are coming into
wider use around the world.
Contribution of Anritsu as a top supplier in the mobile test and measurement field
Anritsu Contributes to Comfortable Living
R&D Applications
Applications in Manufacturing
and Mass Production
Network Construction
and Maintenance
Solutions
Making it easy to log onto networks with smart-phones and tablets
Measuring public broadcasts
Maintaining the safety of automated driving
Measuring and linking optical fiber
Supporting fire depart-ment, ambulance, and disaster relief functions
Monitoring transmissions at event venues
Supporting food safety
Anritsu Integrated Reporting 2015 11
Message from the CFO
Financial Strategies Supporting “Continuous
Growth with Sustainable Superior Profits”
“Investing for growth,” “expanding returns to
shareholders,” and “strengthening our financial
position” are essential for sustainable growth.
After giving consideration to the changes in the
market environment and competitive situation as
well as to the financial market environment, our
financial position, and other factors, at the end of
the day, properly managing these activities consti-
tutes the central core of our financial strategy.
Going forward, the forecast is for change to
become even more severe than in the prior peri-
ods. Anritsu is working to improve its ACE key
performance indicator, while at the same time
placing priority on optimizing cash flow, “invest-
ing in growth,” “boosting returns to sharehold-
ers,” and “fortifying our financial position.”
Accomplishments under GLP2014
To strengthen its global competitiveness, Anritsu implemented
initiatives to create a management infrastructure and frame-
work designed to perform well in an international context.
As part of these activities, Anritsu adopted the globally
recognized International Financial Reporting Standards (IFRS)
beginning in the first quarter of fiscal 2012. In addition, we
positioned ROE and ACE as our key management indicators
and took action to increase corporate value.
Moreover, to continue to secure stable growth in
cutting-edge technology markets, we believe that further
improvement in our financial position will be invaluable. We
worked to achieve a ratio of shareholders’ equity to total
assets of greater than 60% as well as a debt/equity (D/E)
ratio of less than 0.3.
The results are noteworthy. We successfully fulfilled various
global investment criteria standards. Recognized as a compa-
ny that is highly attractive to investors, our stock was chosen
for inclusion in the well-regarded JPX-Nikkei Index 400, and
our debt rating was upgraded to A-.
Financial Strategies and Initiatives
under GLP2017
In view of the strengthening of our financial position due to
initiatives under the previous medium-term management
plan, under our new medium-term business plan GLP2017,
strengthening our cash flow is the highest priority item in our
financial strategy for attaining continuous growth with sus-
tainable profitability. To be sure, the capability to efficiently
generate cash flow, which mirrors corporate value, is the
basis of competitiveness.
To differentiate Anritsu in harshly competitive global markets
and achieve growth in the medium-to-long term, it will be criti-
cal to utilize cash generated via profits and capital efficiencies
and proactively invest it in business development activities
where we forecast growth. We will also carry out strategic
investments, focusing on M&A. We will then recover appropri-
ate returns on our investments, increase returns to shareholders,
substantially strengthen our financial position, and then make
further investments in opportunities with growth potential.
Projecting Anritsu’s corporate value into the future, our
financial objectives under GLP2017 may be summarized as
follows.
Akifumi Kubota
Vice President
CFO
12 ANRITSU CORPORATION
Financial Strategy for Achieving Continuous Growth with Sustainable Superior Profits1. ROE/ACE improvement targetsWe will work to improve capital efficiency and corporate value, and enhance returns to shareholders.
FY2014 (Results) FY2015 FY2017
ROE 10.2% 10% 14%
ACE ¥2.4 billion ¥3.0 billion ¥8.0 billion
Operating cash flow margin 7.7% 9% 13%
2. Strategic investment plan (Cash-based)We will prioritize the allocation of cash to strategic investments to achieve growth.
FY2014 Total of FY2015-17
Normal investments*1 ¥3.0 billion ¥11.0 billion
Strategic investments*2M&A — ¥6.0 billion
BCP ¥2.9 billion ¥4.0 billion
*1 Normal investments include software investments.*2 Strategic investments: These are plan figures that show the usage of cash flow assumed for FY2015 through FY2017 and are not an upper limit on the amounts of investment.
3. We will continue to work to strengthen our financial structure (Equity ratio: 60% to 70%, credit rating of at least A-).
Initiative 1 Our goals are to raise ROE, which was 10% in
fiscal 2014, to 14% in fiscal 2017 and increase ACE from
¥3.0 billion to ¥8.0 billion in fiscal 2017. To this end, we will
work to improve profitability and efficiency and generate cor-
porate value in excess of capital costs.
Initiative 2 By strengthening our cash flow, our goal is to
raise our operating cash flow margin from 8% in fiscal 2014
to 13% in fiscal 2017. Moreover, we will shorten our cash
conversion cycle (CCC), which is another important KPI, by
20 days, from 140 days in fiscal 2014 to 120 days in fiscal
2017. We will realize these goals through increasing profit-
ability by accelerating cost reductions and utilizing expenses
more efficiently. We will also work to improve asset efficiency
by reducing inventories, promoting recovery of receivables,
and other measures.
Initiative 3 We have a number of options for boosting cor-
porate value when making strategic investments. One of our
most-important management issues will be to consider and
implement investments from a medium- to long-term per-
spective based on scenarios of either further expanding exist-
ing businesses (via strengthening technological capabilities,
expanding marketing power, etc.), and/or accelerating the
development of new businesses.
In our development activities, as in the past, we will aim
for developmental ROI (defined as gross profit on net sales
divided by the amount of developmental investments) equal
to or greater than 4.0 as a key factor in raising our invest-
ment efficiency.
* ACE: Anritsu’s original KPI for corporate valuation, defined as operating profit after tax minus capital cost
Anritsu Integrated Reporting 2015 13
Review of Operations
L Business AreasTelecommunications services that we can use at any time and
anywhere have become an indispensable presence in our lives.
The Test and Measurement business operates in the mobile
market, including smartphones and other handsets, and in the
network infrastructure market, including wireless base stations
and optical communications networks. The segment also oper-
ates in the electronics market for telecom equipment and
telecom-use electronic components, which are used in a variety
of devices. In both wireline and wireless, Anritsu covers all
telecommunications areas with its advanced technology and
its strong global development and support structure. Through
this, in the midst of the fast- changing communications indus-
try, we contribute to the development of mobile broadband
service by offering testing solutions for leading-edge market
needs and are contributing to the advance of IoT services.
Making Our Lives More Convenient and ComfortableSolutions that Support Social Innovation by Realizing Mobile Broadband and IoT
Test and Measurement
Metro Network
Core Network
Mobile Fronthaul/Backhaul
Monitoring network quality (for carriers)
Quality assurance for ultra-high speed network equipment (10/100/400Gbps)
Quality assurance for electronics devicesElectronic components, communications devices, car electronics, etc.
Wireless base stationsQuality assurance during construction & maintenance
Quality assurance for mobile devices & chipsets
Cloud Computing
Big Data
Tablets
Base stations
Base station control systems
FTTH/FTTx
Data centers
Automobiles
Energymanagement
Social ICT
M to M/Internet of Things
Smartphones
14 ANRITSU CORPORATION
L Review of Fiscal 2014 and GLP2014In our Test and Measurement business, where the principal
market is mobile communications, from fiscal 2012 through
fiscal 2014, dramatic changes in the business environment
took place, including intensification of competition among
mobile market players and industry realignments, such as
mergers and acquisitions. Other changes included the increas-
ing sophistication and wider penetration of mobile units at an
accelerating pace. In addition, by geographical area, conditions
in Asia held generally firm, but there were signs of stagnation
in the Japanese market. Investment behavior among our cus-
tomers continued to be uncertain, and we focused our efforts
on product development markets that require cutting-edge
functions and responded aggressively to manufacturing mar-
kets where increased efficiency is demanded. Overseas, we
also continued to invest in strengthening our customer sup-
port functions in areas where market growth is expected.
Revenue for the fiscal year ended March 31, 2015 (fiscal
2014) amounted to ¥73,443 billion, a decrease of 3.3%, and
operating profit was ¥8,944 million, a decline of 31.3%.
L Business Environment in Fiscal 2015 and Points to Watch
In the Test and Measurement segment, we will continue
to focus on three markets. In the mobile market, which is
expanding worldwide, we will introduce advanced solutions,
which are our strength, as quickly as possible, while also
strengthening our technological support functions to tighten
our relationships with customers and consolidate our com-
petitive position.
In the network infrastructure market, base station net-
works are expanding, and their density (coverage) is rising
along with the expansion of small cell stations (with lower
output power and smaller coverage range). We are readying
products to respond to this trend toward strengthening
networks on a global scale.
In the electronics market, where the range of transmission
methods is expanding, we will make timely introductions in
the electronic components market, where major growth is
expected going forward to support M2M and the Internet of
Things (IoT). We will also raise our profile by making well-
timed launches of millimeter wave solutions in the 5G field,
including the automotive area.
Other areas of focus will be structuring a global procure-
ment system, and making active progress in increasing the
efficiency of our R&D and customer support, as we also work
to increase profitability.
Test and Measurement Segment Revenue by RegionL Americas L EMEA (Europe, Middle East, Africa) L Asia (ex Japan) L Japan
100%
40%
60%
80%
2012/3 2013/3 2015/32014/30%
20%
50%
70%
90%
10%
30%
25% 30% 35% 30%
15%15%
18%20%
30%30%
30% 35%
30% 25%17% 15%
T&M Business: Profit Structure Improvement TargetsL Cost of sales L R&D expenses L Selling, general and administrative expenses L Operating revenue
100%
40%
60%
80%
2013/3 2014/3 Operating Model2015/3 2018/30%
20%
50%
70%
90%
10%
30%
38% 38% 40% 38%
11% 12% 13% 12%
30% 32%35%
30%
21% 17% 12%20%
40%
12%
33%
15%
Test and Measurement Segment—New Products
Radio Communication Analyzer: MT8821C
Network Master Series: MT1000A and MT1100A
First in the industry to make possible assessment of 3CC and 2 x 2 MIMOs
Responds to needs in the development, manufacturing, construction, and mainte-nance areas
Anritsu Integrated Reporting 2015 15
Leveraging Anritsu’s strengths in technologies and customer base in integrated solutions for wireless, optics, and systems!
New social infrastructure systems
IoT/5G
CPRI
Radio
RRH
RRHRRH
Baseband
Core Network
Cloud computing Big Data
Social ICTSmart LifeSmart Home
Smart Car
Entertainment
L Mid- to Long-term Business Environment and Anritsu Initiatives—Realizing a safe, secure, and comfortable society always and everywhere
Under GLP2017, the strategy and growth opportunities in the Test and Measurement business are due to technical progress
that will permit the realization of a broadband environment that will create social value and customer experience value by pro-
viding “a safe, secure, and comfortable society always and everywhere.”
Mobile Business Strategy
Going forward, the mobile business area is expected to expand to include services on many more kinds of devices. The LTE system will
evolve into the LTE-Advanced, and growth will continue in preparation for “5G” that is scheduled for commercialization in 2020.
Network Infrastructure Business Strategy
In the network infrastructure business, looking ahead, a huge number of small cells will be layered over traditional macrocells, and
optical fiber will be used for connections. Anritsu will respond to the emerging needs of its customers by leveraging its superior
in-house optical and wireless technologies as well as its record of performance and its customer base as a top supplier for wireless
measurement devices.
Spread of 3G service
Spread of smartp
honesProduction
Global market
Japanese market
R&D, Conformance, Interoperability
Start of 3G service
Start of LTE service
Development of LTE-Advanced
IoT/M2M
Module/Non-Cellular
Seamless connection of all wireless systems
BTS Master
2000 2005 2010 2015 2017 2020
Install & Maintenance
PIM MasterMeasurement for
new base station network
5G ultra-high speed,ultra-low latency
5CC–1Gbps4CC 600Mbps
3CC 450Mbps
Site Master (1995–)
Rev
enu
e
Expansion of service
Even more comfort! Evolution from LTE-Advanced to 5G
5GGLP2017
16 ANRITSU CORPORATION
Review of Operations
Looking Back on GLP2014
The mobile measurement business
underwent substantial change over the
course of our GLP2014 Mid-term
Business Plan. We moved from a period
when smartphones and other devices
were competing on functions to a period
when the competition has shifted to
enhancing the customer experience. As a
result, the players in this market changed
significantly. Anritsu launched two initia-
tives to transform its approach. First, we
strengthened our partnerships with the
leading players in the market and with
new chip vendors. Second, we reinforced
our global support systems. Based on our
actions over the past three years, we
were able to enhance our systems to
respond promptly to the diverse needs of
customers who are world leaders and
were able to build a solid foundation for
the next stage of growth.
Initiatives to Achieve GLP2017 Goals
without Fail
We are working to realize the objectives
of our next medium-term business plan
GLP2017. To do so, we will continue to
provide high-value-added solutions to
capture global business opportunities,
and are committed to attaining this new
plan’s goals without fail. Our GLP2017
plan also marks a milestone on our way
to the goal of our 2020 VISION, which is
to consolidate our position as a global
market leader. On the cutting edge of
mobile communications technology, LTE-
Advanced will evolve to provide even
faster and higher-quality performance.
Clearly, we have built bonds of trust with
our customers who are world leaders in
this field, and are offering them timely
test and measurement solutions, includ-
ing carrier aggregation and advanced
antenna technology (MIMO, Multiple
Input Multiple Output), which are com-
ponent technologies for LTE-Advanced
systems. Through such initiatives, we are
making a significant contribution to the
development of next-generation mobile
communications technologies.
The volume of data transmission is ris-
ing sharply along with the wider use of
smartphones and tablets. The forecast
calls for the construction of new base
station networks and installation of small
cells. The number of mobile bases linked
with optical fiber is likely to increase rap-
idly. We anticipate that demand for opti-
cal time domain reflectometers (OTDRs)
and other optical fiber network test and
measurement equipment will rise apace.
Moreover, as a result of the wider use
of LTE systems around the world, com-
munications functions featuring low cost
and low power consumption for use in
IoT applications are appearing, and there
is a growing movement toward using LTE
systems in network bases. We are mov-
ing forward with strengthening our
capabilities in this area. We will aim for
expanding sales in the M2M/IoT markets,
where a dramatic rise in demand is
expected.
Along with changes in the market
environment, growth in Asian markets
outside Japan, including China, has been
exceptionally robust. We believe that
major growth-related issues will be
strengthening our support systems in
Asia, expanding our customer base, and
making sure we capture demand for test
and measurement equipment related to
research and development as well as to
manufacturing in the mobile device field.
If we look forward to the year 2020,
commercialization of 5G systems will be
in sight. Both LTE-Advanced systems and
new network stations are component
technologies that will merge in the
future with 5G systems that are currently
under development. A key in this area
will be the realization of 5G for use with
micro- and milli-wave technology, which
is an area of competitive advantage for
Anritsu.
One of Anritsu’s assets is its ability to
flexibly respond to dynamic changes in
the market environment. We at Anritsu
are dedicated to fielding as quickly as
possible cutting-edge solutions that
reflect emerging transformations in the
marketplace.
envision : ensure Sharing dreams with our customers and realizing business opportunities
Key word for differentiating our services
Customer Experience
Development ofmobile broadband
From “people to people” to “between people and things” (M2M/IoT)
Incorporating communicationsmodules in all service delivery modes
Where Anritsu offers solutions, business opportunities expand.
Offering high-level services to society
Systems that expand business
(Business model)
Developing environments that are dramatically more convenient and comfortable
Kenji TanakaSenior Executive Vice President
Test and Measurement Business Group President
Message from the Test and Measurement Group President—Working to Attain Objectives of GLP2017
Anritsu Integrated Reporting 2015 17
L Review of Fiscal 2014 and GLP2014During the first half of fiscal 2014, ended March 31, 2015,
customers in Japan appeared to be adopting a cautious
stance toward capital investment, but sales proceeded
smoothly in the second half. Overseas markets, especially in
North America, held firm. In addition, to capture investment
demand in Japan and expand revenue overseas, we made
investments in R&D and conducted aggressive marketing
activities. As a result, revenue amounted to ¥16,198 million
(a decrease of 4.3% from the previous fiscal year), and
operating profit was ¥824 million, a 31.8% decline.
Under GLP2014, to expand our business activities in over-
seas markets that are expected to grow, we strengthened
our local manufacturing and sales support systems. As a
consequence, overseas revenue of the Industrial Automation
business expanded from 30% of total revenue in fiscal 2010
to 40% in fiscal 2014.
L Business Environment in Fiscal 2015 and Points to Watch
Achieved deeper market penetration through
increasing product value added and differentiation
In growth markets overseas, we are working to optimize our
supply chain by implementing a strategy of producing locally
for local sales. We are also strengthening the competitiveness
of our products, price competitiveness, and local engineering
functions. We will also deepen ties with global food product
manufacturers and develop business with new customers.
L Environment and Initiatives under GLP2017Growth drivers in industrial automation will be the desire
for greater safety, security, and health improvement
Drawing on the position we have built as a top player in
the advanced Japanese market, we will work to expand our
market share in North America and the rest of Asia, both
of which are expected to become enormous markets in the
years to come. Our long-term goal is to raise the percentage
of overseas revenue in total revenue to 50% and expand our
overseas management resources.
Automatic Combination SystemSubdivides the materials into a fixed quantity
X-Ray Inspection SystemDetects contaminants, shape testing, etc.
Comprehensive Production Management System Integrated control of the overall operating status of the production line
CheckweighersChecks quality and quantityand missing material
Metal Detector Detects metallic contaminants
Pharmaceutical and cosmetics industriesTablets, capsules, liquid pharmaceuticals, adhesive skin patches, etc.
Pharmaceutical and cosmetics industriesTablets, capsules, liquid pharmaceuticals, adhesive skin patches, etc.
Food processing and distribution industriesAgricultural products, seafood/meat processing, confectioneries, frozen food, etc.
Food processing and distribution industriesAgricultural products, seafood/meat processing, confectioneries, frozen food, etc.
Wrapping machinery
L Business AreasOne of mankind’s common desires is for safety and security
of the foods we eat and the pharmaceuticals we take. The
Industrial Automation business provides X-ray inspection sys-
tems to detect foreign-matter contamination, metal detec-
tors, and checkweighers that weigh at high speed and high
precision. We provide these products to the food production,
pharmaceutical, and cosmetics industries. About 80% of our
business is to the food production industry, which is relatively
resistant to demand changes due to the business cycle. This
has afforded us the opportunity to conduct business in
markets where stable growth is expected.
Living Safely EverydaySupporting safety and security through contaminant detectors
Industrial Automation
New Products in Industrial Automation
X-ray inspection systems: XR75 Series
Metal detector: M5 Series
Restrains main-tenance expens-es and lowers total life-cycle costs
High cost performance
18 ANRITSU CORPORATION
Review of Operations
Message from the Industrial Solutions Business Group President —Working to Attain the Objectives of GLP2017
Industrial Solutions Business Group
Vision and Initiatives
The Industrial Solutions Business Group
has set targets for fiscal 2020 of ¥25.0
billion in revenues and an operating prof-
it ratio of 12%. We are at work enhanc-
ing our business base to make the
transition from an exporter business
model to a “produce locally for local
sale” business model. In terms of pro-
duction systems, the Industrial Solutions
Business Group aims to structure a global
supply chain that combines optimal
production and local production effec-
tively to meet requirements for quality,
delivery schedules, and cost minimiza-
tion.
Our principal markets are food prod-
ucts and pharmaceuticals. From a global
perspective, both of these markets are
growing steadily as a result of technolog-
ical progress in process packaging and
expansion in the distribution of pro-
cessed foods in small-lot packages. As a
top company in the market, the biggest
issue for us is to provide stable supplies
of quality-assured products. In addition,
demand for our products is demonstrat-
ing sustained growth not only among
large companies, but also among medi-
um-sized enterprises, both in the indus-
trialized markets and emerging markets
as well.
As a milestone along the way to
reaching our 2020 VISION plan, in our
Mid-term Business Plan GLP2017 we
have set a revenue target of ¥20.0 billion
in fiscal 2017.
Our core strategies for reaching these
targets are (1) to create a growth spiral
through strengthening our own value
chain by solving quality assurance issues
among customers in the industrialized
countries and (2) to differentiate our
quality assurance solutions via utilization
of sensing technologies and leveraging
of workplace experience. We are plan-
ning to build on the value we have creat-
ed from our position in Japan, which
features the most-advanced quality
assurance issues. Going forward, we will
focus on expanding business opportuni-
ties in the North American market by dif-
ferentiating Anritsu from competitors in
terms of the originality and high level of
our products, services, and responsive-
ness to customers.
In October 2015, we will change the
name of our subsidiary Anritsu Industrial
Solutions Co., Ltd., to Anritsu Infivis Co.,
Ltd. The aim of this name change for the
core company in Anritsu’s Industrial
Automation business is to introduce the
concept of “infi(nite)” (infinite from here
on) and “vis” (or sharing vision with cus-
tomers). At the same time, we will also
change the name of the business seg-
ment to Product Quality Assurance.
Through initiatives such as these, we
aim to establish a brand that symbolizes
“quality assurance solutions that are
recognized by customers around the
world.”
FY2014
Anritsu Sales
20%
80%
(Billions of yen) (Billions of yen) (Billions of yen)
60%40%
20%
80%55%45%
19%
81%50%50%
Domestic Ratio
OverseasRatio Domestic Overseas
FY2020FY2017
¥170.0¥150.0¥135.0
¥25.0¥20.0¥16.2
Anritsu Sales Growth Ratio7%/Year
Market Size
Market Size Growth Ratio4%/Year
Market Major initiatives
North America Develop market with X-ray inspection systems as a key solution
Japan Improve market share through quality assurance solutions with high added value in response to cutting-edge needs
Fumihiro TsukasaSenior Vice President
Industrial Solutions Business Group President
Industrial Solutions business: Expanding overseas businessesThe quality assurance market for food and pharmaceutical products will remain stable with an average annual growth rate of 4% (Anritsu’s estimates).
Anritsu Integrated Reporting 2015 19
R&D
To contribute to the creation of a safe, secure, and prosperous global society, Anritsu conducts “Original
& High Level” R&D related to its products and services globally in its R&D centers in Japan, the United
States, Europe, and Asia.
The Test and Measurement business conducts research collaboratively at Anritsu Company in the
United States, Anritsu Ltd. in the United Kingdom, and Anritsu A/S in Denmark and draws on its holdings
of technology to realize synergies. The Industrial Automation business conducts R&D within Anritsu
Industrial Solutions Co., Ltd.
Basic Policy on R&D Investments The communications industry is characterized by rapid technological progress, and the number of Anritsu’s R&D themes in the mobile
test and measurement field is increasing at an accelerating rate of speed. Under the circumstances, the Group is working to increase
investment efficiency by using R&D investment management methods based on KPIs that emphasize returns on investment.
Specifically, our KPI target index for R&D investments is an R&D ROI (gross profit/R&D investment value) of 4.0 times or higher.
R&D Expenses by Business Segment(Billions of yen) R&D ROI (times)
15
5
10
6.0
4.0
5.0
2013/3 2014/3 2015/32012/32011/30 3.0
BasicResearch
Others
IndustrialAutomation
Testing andMeasurement
R&D ROI(Consolidated)
As a percentage of revenue
Japanese GAAP
IFRS
10.7% 10.9% 12.3% 12.3% 13.5%
L Major R&D Achievements • Strengthened functions for testing solutions for mobile
device development and production
Solutions for LTE-Advanced (FDD/TDD)
• Test and measurement devices for network infrastructure:
New Product Release: Network Master Pro/Flex
• R&D related to expansion of electromagnetic wave resourc-
es for the Ministry of Internal Affairs and Communications:
High-level testing technology for weak signal wireless
transmission in the range over 100 GHz
• Solutions for detecting contaminants in food products and
pharmaceuticals:
New Product Release: X-Ray Detection Devices, Metal
Detectors
Global R&D Network
Americas• T&M
Asia• T&M• Industrial Automation
Europe• T&M
Japan• T&M• Industrial Automation• Others
20 ANRITSU CORPORATION
L Strengthening Global Collaboration and Realizing Synergies
In our Corporate Philosophy, the phrase “Original & High
Level” refers to key concepts supported by our continuing
commitments to creativity and innovation. We operate R&D
centers not only in Japan but also globally, including the
United States, Europe, and the rest of Asia. Each of these
centers has its own field of strength. We achieve synergies
through global collaboration as we work to draw on these
respective strengths and continue to hone our capabilities
from the perspectives of both software and hardware.
Appropriate to a company with some 120 years of history,
at Anritsu’s R&D centers in Japan, we have raised to a high
level the comprehensive capabilities of systems that integrate
our advanced hardware and software. In our European R&D
center, along with our strengths in developing software, we
are taking the maximum advantage of the center’s location
in Europe, where the unification of communications stan-
dards is quite advanced, and are accessing the latest trends
in standards to provide a competitive advantage in develop-
ment. In the United States, we are able to respond proactive-
ly to the demanding requirements of customers who seek
quick access to information and solutions regarding IT utiliza-
tion. On balance, we have the staying power to provide reli-
able results at a very close range to our customers.
Anritsu technical personnel regularly engage on the visions
and aspirations of their customers, and are fortunate to be
able to refine their own skills and knowledge as they respond
to customer needs. Many of our technical personnel have
had extensive careers with Anritsu, which contributes to their
sense of professional achievement.
L New Global Headquarters Building Completed during Anritsu’s 120th Anniversary Year
In 2015, Anritsu marked the 120th anniversary of its found-
ing. To commemorate this milestone in Anritsu’s business
history, the Anritsu Group completed a new global head-
quarters in Atsugi, Japan that is now the core of our opera-
tions. Our new headquarters building has a total of
28,000m2 of floor space, housing our headquarters opera-
tions, a test and measurement R&D center as well as market-
ing and administrative divisions. Home to a total of about
1,000 employees, our new headquarters has been designed
to foster an intellectually creative environment inspiring inno-
vation and co-creation with our customers.
Featuring state-of-art security systems, our global head-
quarters building also incorporates the latest earthquake-
resistant construction, thereby increasing safety. Aligned
with our business continuity plan (BCP) readiness, the new
headquarters has emergency electric power sources that
can operate for 144 hours (six days) without external
power inputs.
The new building was designed with the conservation of
the natural environment fully in mind. Environmentally con-
scious aspects include the installation of a light shelf natural
ventilation system on the windows of the north-south wing
and other features that make it a comfortable place to work
while also reducing the burden on the environment. As a
result of initiatives to bring environmental issues to the fore,
the building is equipped with LED lighting fixtures that incor-
porate environmentally attuned sensors to control light
intensity and sense the presence of human beings. Under the
CASBEE Kanagawa evaluation scale (which ranges from S, A,
B+, B-, to C) for building planning and systems that respond
to the need to address global warming, the new headquar-
ters building received the highest S ranking.
Toshihiko TakahashiSenior Vice PresidentChief CTO, Environment, and Quality Officer
Anritsu Integrated Reporting 2015 21
Corporate Governance
We will continue to fulfill our corporate mission with “Sincerity, Harmony, and Enthusiasm”, as stated in
the Anritsu Group’s Corporate Philosophy, by maintaining and implementing our internal system to facil-
itate transparent, fair, prompt, and bold decision making in the interests of shareholders, customers,
employees, the community, and other stakeholders.
L Basic ApproachAnritsu’s priority management issues are responding to
changes in the operating environment in a flexible and
speedy manner, improving competitiveness as a global com-
pany, and continuing to increase corporate value. To address
these issues, we are placing priority on and working to create
an environment and structure where corporate governance
can function effectively.
1. Greater management transparency
2. Appropriate and timely disclosure
of information
3. Stronger management supervision
4. Management resources
development
L Management SystemAnritsu, as a company with an Audit & Supervisory Board,
appointed three independent outside directors and two inde-
pendent outside audit & supervisory board members. In addi-
tion, Anritsu formed its Nominating Committee and
Compensation Advisory Committee, as voluntary advisory
bodies to the Board of Directors, which are composed mainly
of outside directors, with the aim of securing transparency
and accountability. Through these and other activities,
Anritsu has been taking initiatives to strengthen its corporate
governance system.
Beginning in June 2015, Anritsu started to move forward
with these corporate governance initiatives by continuing the
functions of the Nominating and Compensation Advisory
Committees, choosing to become a “Company with an Audit
Committee” as provided in the revised Companies Act, and
forming an Audit Committee with the aim of strengthening
Corporate Governance System
Shareholders’ Meeting
Board of Directors
Audit Committee
Independent Committee
Compensation CommitteeNominating CommitteeManagement Audit Department
Outside Director
Internal Director
Chairperson
[Legend]
22 ANRITSU CORPORATION
its corporate governance system. The reasons for becoming a
Company with an Audit Committee are as follows.
1. In view of the Company’s high consolidated overseas reve-
nue ratio and high foreign stock ownership ratio, we will
establish a corporate governance system that is easily
understandable from a global perspective.
2. By bringing together independent outside directors with
valuable skills and insight and including them in the mem-
bership of the Company’s Board of Directors to increase
transparency and hold active discussions from the share-
holders’ viewpoint.
3. By establishing an Audit Committee and providing voting
rights in the Board of Directors to Directors who are mem-
bers of the Audit Committee, we will strengthen their
audit and supervisory functions and substantially enhance
our internal control system.
L Supervision and Execution of ManagementAnritsu has separated the functions of the Board of Directors,
responsible for the supervision of management and the func-
tions of the executive officers. Material matters regarding the
execution of business are deliberated and decided at the
Management Strategy Conference, which is chaired by the
CEO. Major items related to management strategy, especially
basic management policies and medium- to long-term busi-
ness strategies as well as financial strategies, are decided by
the Board of Directors after discussions in the Management
Strategy Conference.
L Selection of Directors and Members of Management
The Nominating Committee and Compensation Advisory
Committee have a total of four members each; three are
outside directors and one is an internal director. Each com-
mittee is a chaired by an outside director. The Nominating
Committee is responsible for the preparation of a list of can-
didates for executive officers and other members of manage-
ment at the same level as executive officers. It also prepares a
list of candidates for outside director that takes account of
criteria for independence, diversity of the Board, and other
considerations and submits it to the Board of Directors.
L Ratio of Outside DirectorsAnritsu promotes management that draws on external
perspectives as one of its measures to strengthen corporate
governance. The Board of Directors comprises eleven
members, including five executive directors, and five outside
directors so that the supervision of management is substan-
tially reinforced. This composition rises the percentage of
outside directors in the Board of Directors to increase trans-
parency, and hold active discussions from the shareholders’
perspective.
L Independent CommitteeIn a new corporate governance initiative, the Independent
Committee has been formed to have five independent out-
side directors as members, including outside directors who
are members of the Audit Committee. As a result, along with
the appointment of a lead independent outside director, a
venue for lively discussion has been created, and members
are able to exchange information and share awareness from
an independent and objective perspective as well as provide
advice and recommendations to the management.
L Activities of Outside DirectorsDuring the fiscal year under review, outside directors attend-
ed nearly all the meetings of the Board of Directors and pro-
vided advice based on their professional insights . As an
activity unique to Anritsu, outside directors assume the role
of lecturers and give talks to top management regarding
practical issues based on their specialist knowledge, which is
useful in promoting the further development of manage-
ment personnel.
Compensation of DirectorsThe compensation of Directors and executive officers is dis-
cussed in the meetings of the Compensation Committee, an
advisory group to the Board of Directors. Discussions cover
directors’ bonuses based on performance in the previous
fiscal year, the scheme for Director’s compensation, compen-
sation levels for the current fiscal year, and other related mat-
ters. Basic policies for Director’s compensation and related
matters are as follows.
1. Creation of systems that will create motivation for
achieving corporate objectives and continuing to create
corporate value
2. Creation of attractive systems that will enable the
Company to secure capable and diverse personnel as
Directors of a global corporation
3. Securing appropriateness and objectiveness in the com-
pensation determination process and in allocation of
compensation
Anritsu Integrated Reporting 2015 23
Directors and Executive Officers
Directors
Representative Director, President
Hirokazu HashimotoApr. 1973 Joined the CompanyApr. 1998 Senior Manager of Accounting &
Control Dept.Jun. 2002 Director of the Company, Vice
President, Senior Manager of Accounting & Control Dept.
Apr. 2004 Senior Vice PresidentJun. 2006 Executive Vice PresidentJun. 2007 Representative DirectorApr. 2010 Representative Director, President
(Incumbent) Anritsu Group CEO (Incumbent)
Representative Director
Kenji TanakaApr. 1974 Joined the CompanyMar. 2002 Senior Manager of Marketing Dept.,
Wireless Com Div., Measurement Solutions
Apr. 2003 Senior Manager of Product Marketing Dept., Wireless Measurement Business Dept., Measurement Business Div.
Apr. 2004 Vice President, Senior Manager of Wireless Measurement Business Dept., Measurement Business Div.
Apr. 2008 General Manager of Marketing Dept., Sales and CRM Strategy Group
Apr. 2009 General Manager of Marketing Div.Jun. 2009 Director of the Company, General
Manager of Marketing Div.Apr. 2010 Executive Vice President, Measurement
Business Group President (Incumbent)Jun. 2010 Representative Director (Incumbent)Apr. 2012 Senior Executive Vice President
(Incumbent)
Director
Fumihiro TsukasaApr. 1974 Joined the CompanyJun. 2000 Senior Manager of Marketing Dept.,
Industrial SolutionsJul. 2002 Senior Manager of 2nd Development
Dept., Development Div., Anritsu Industrial Solutions Co., Ltd. (AI)
Apr. 2005 Senior Manager of Development Support Dept., Development Div., AI
Apr. 2006 Deputy General Manager of Manufacturing Div., AI
Jun. 2006 Vice President, General Manager of Manufacturing Div., AI
Apr. 2008 General Manager of Management Strategy Center of AI
Jun. 2008 Representative Director & President of AI (Incumbent)
Apr. 2011 Vice President of the Company Industrial Solutions Business Group President (Incumbent)
Apr. 2012 Senior Vice President of the Company (Incumbent)
Jun. 2012 Director of the Company (Incumbent)
Director
Toshisumi TaniaiApr. 1981 Joined the CompanyJul. 2004 Senior Manager of Sales Support
Dept., Sales Div.Apr. 2008 Senior Manager in charge of Human
Resource and Administration Dept.Apr. 2009 Vice President (Incumbent)
Senior Manager of Human Resource and Administration Dept.
Apr. 2011 Chief Corporate Officer (Incumbent)Jun. 2011 Director of the Company (Incumbent)Apr. 2013 Chief Management Strategy Officer
(Incumbent), General Manager of Management Strategy Center (Incumbent)
Apr. 2015 Senior Vice President (Incumbent)
Director
Akifumi KubotaApr. 1983 Joined the CompanyApr. 2004 Senior Manager in charge of
Accounting & Control Dept.Apr. 2007 Senior Manager of Accounting &
Control Dept.Apr. 2010 Vice President (Incumbent)
Chief Financial Officer (CFO) (Incumbent)Jun. 2013 Director of the Company (Incumbent)
Senior Manager of Accounting & Control Dept. (Incumbent)
Director*
Teruaki AokiJan. 1970 Joined Sony CorporationJun. 1989 Director of Sony CorporationJun. 1996 Managing Director of Sony CorporationApr. 1998 President & COO of Sony Electronics
Inc. (U.S. corporation)Jun. 2003 Senior Executive Vice President of Sony
CorporationApr. 2005 President of Sony University of Sony
Corporation (Incumbent)Feb. 2006 Director of Micron Technology, Inc.
(U.S. corporation)Apr. 2006 Executive Alumnus of Sony Corporation
(Incumbent)Jun. 2007 Outside Director of Citizen Holdings
Co., Ltd.Jun. 2011 Representative Director of Micron
Japan, Ltd. (Incumbent)Jun. 2014 Director of the Company (Incumbent)Reason for appointment: The Company appoints Mr. Teruaki Aoki as an Outside Director in the expecta-tion to reflect his abundant experience and remarkable insight as a manager of business operations with con-siderable insight on global business to the Company’s management.
Director*
Sachiko IchikawaApr. 1989 Joined The Dai-Ichi Kangyo Bank, Ltd.
(Currently Mizuho Bank, Ltd.)Feb. 1990 Resigned The Dai-Ichi Kangyo Bank, Ltd.Apr. 1997 Registration of Attorney-at-law, Joined
TANABE & PARTNERSJan. 2005 Registration of Attorney-at-law (New
York, U.S.)Nov. 2009 Auditor of the Board Director Training
Institute of Japan (Incumbent)Jan. 2011 Partner of TANABE & PARTNERS
(Incumbent)June 2015 Director of the Company (Incumbent)Reason for appointment: The Company appoints Ms. Sachiko Ichikawa as an Outside Director in the expectation to reflect her abundant legal knowledge and remarkable insight regarding mainly corporate governance and compliance as an attorney-at-law.
Director*
Takashi SanoOct. 1973 Joined Arthur Andersen (Currently
KPMG AZSA LLC)Feb. 1979 Joined NEMIC-LAMBDA K.K. (Currently
TDK-Lambda Corporation)Jun. 1986 President of NEMIC-LAMBDA
Singapore PTE. LTD. (Currently TDK-Lambda Singapore Pte. Ltd.)
Dec. 1992 Joined Inoue Saito Eiwa Audit Corporation (Currently KPMG AZSA LLC)
Jan. 1993 Registration of C.P.A.Aug. 1997 Representative Partner of Asahi Audit
Corporation (Currently KPMG AZSA LLC)
Dec. 2007 Established Sano CPA office (Incumbent)
Jun. 2011 Outside Corporate Auditor of Zuken Inc.
Jun. 2014 Outside Director of Zuken Inc. (Incumbent)
Jun. 2015 Director of the Company (Incumbent)Reason for appointment: The Company appoints Mr. Takashi Sano as an Outside Director in the expectation to reflect his abundant experience and remarkable insight as a manager of business operation with considerable insight on global busi-ness and his abundant knowledge and remarkable insight on finance and accounting as a CPA to the Company’s management.
Director (Audit Committee Member)
Takaya SekiApr. 1977 Joined Toyo Trust and Banking Co., Ltd.
(Currently Mitsubishi UFJ Trust and Banking Co., Ltd.)
Oct. 1995 Assistant Manager of Stock Transfer Agency Department of Toyo Trust and Banking
Mar. 2001 Resigned Toyo Trust and Banking Co., Ltd. Joined Mizuho Securities Co., Ltd.
Oct. 2001 Senior Research Manager and Chief Researcher, Japan Investor Relations and Investor Support, Inc.
Apr. 2006 Lecturer at Meiji University Graduate School of Global Business (Incumbent)
Jun. 2008 Resigned Mizuho Securities Co., Ltd. and Japan Investor Relations and Investor Support, Inc. Managing Director of Corporate Practice Partners, Inc. (Incumbent)
Mar. 2009 PhD (Econ), Kyoto UniversityJun. 2011 Director of the CompanyApr. 2012 Lecturer, Meiji University School of
Commerce Visiting Professor, Reitaku University Faculty of Economics and Business Administration (Incumbent)
Apr. 2014 Lecturer, Meiji University, The Organization for International Collaboration (Incumbent)
Jun. 2015 Director of the Company (Audit Committee Member) (Incumbent)
Reason for appointment: The Company appoints Mr. Takaya Seki as an Outside Director in the expectation to reflect his abundant knowledge and remarkable insight as an expert on global cor-porate governance to the Company’s management and audit.
Director* (Audit Committee Member)
Yuji InoueApr. 1971 Joined Ricoh Co., Ltd.Jan. 1997 Deputy General Manager of Finance
and Accounting DivisionApr. 1998 General Manager of Finance and
Accounting DivisionOct. 1998 General Manager of Business
Development of Ricoh Leasing Co., Ltd.Jun. 1999 Managing Director of Ricoh Leasing
Co., Ltd.Apr. 2000 President of Ricoh Leasing Co., Ltd.Jun. 2000 Senior Vice President of Ricoh Co., Ltd.Jun. 2004 Managing Director of Ricoh Co., Ltd.Jun. 2005 President and Chief Executive Officer
of Ricoh Leasing Co., Ltd.Jun. 2009 Resigned President and Chief Executive
Officer of Ricoh Leasing Co., Ltd. Corporate Auditor of Ricoh Co., Ltd.
Jun. 2013 Resigned Corporate Auditor of Ricoh Co., Ltd.
Jun. 2014 Outside Corporate Auditor of Infoteria Corporation (Incumbent)
Jun. 2015 Director (Audit Committee Member) of the Company (Incumbent)
Reason for appointment: The Company appoints Mr. Yuji Inoue as an Outside Director in the expectation to reflect his abundant experience as a manager of business operation, and abundant knowledge and remarkable insight on finance and accounting to the Company’s management and audit.
Director (Audit Committee Member)
Tomoyuki KikugawaApr. 1979 Joined the CompanyApr. 2001 Senior Manager of 2nd Development
Dept., Research LaboratoryApr. 2003 Senior Manager of Gas Sensor
Development Project C Team, Research Laboratory
Sep. 2005 Deputy Senior Manager of Optical Devices R&D Center, Technology Representative Director and President of Anritsu Devices Co., Ltd.
Apr. 2006 Senior Manager of Optical Devices R&D Center, R&D Div.
Mar. 2008 Resigned Representative Director and President of Anritsu Devices Co., Ltd.
Apr. 2008 Senior Manager of Core Technology R&D Center, R&D Group
Apr. 2009 Representative Director and President of Anritsu Devices Co., Ltd.
Apr. 2011 Vice President of the CompanyNov. 2012 General Manager of Technology
Management CenterMar. 2013 Resigned Representative Director and
President of Anritsu Devices Co., Ltd.Jun. 2013 Resigned Vice President
Full-time Audit & Supervisory Board Member
Jun. 2015 Resigned Full-time Audit & Supervisory Board Member Director (Audit Committee Member) (Incumbent)
* Outside Directors as specified in Japan’s Company Act, Article 2-15
24 ANRITSU CORPORATION
Corporate Governance
Executive Officers
Hirokazu Hashimoto*PresidentGroup CEO
Kenji Tanaka*Senior Executive Vice PresidentTest and Measurement Business Group President
Fumihiro Tsukasa*Senior Vice PresidentIndustrial Solutions Business Group President
Toshihiko TakahashiSenior Vice PresidentChief CTO, Environment, and Quality Officer
Toshisumi Taniai*Senior Vice PresidentChief Corporate Officer
Takashi SeikeSenior Vice PresidentChief Measurement Business Group Global Strategy Officer
Nobuo FunahashiVice PresidentInformation & Communication Group President
Akifumi Kubota*Vice PresidentChief Financial Officer
Gerald OstheimerVice PresidentChief EMEA Business OfficerChief Service Assurance Business OfficerChief Integrated Network Infrastructure Business Officer
Yasunobu HashimotoVice PresidentChief Japan Sales Officer
Tsukasa HattoriVice PresidentChief SCM Officer
Wade HulonVice PresidentChief Americas Business Officer
Toru WakinagaVice PresidentChief Asia Pacific Business Officer
Yukihiro TakahashiVice PresidentChief Marketing Officer
Hirokazu HamadaVice PresidentChief Measurement Business R&D Officer
* Concurrently serving as director
One of the most-important issues in corporate management today is corporate gover-
nance, which is a system for the management of companies that have many stakehold-
ers and for the imposition of discipline among persons responsible for corporate
management. The most-visible corporate governance reforms provide for incorporating
the perspectives of persons outside the company when managing the company and
heightening of awareness of the importance of strategies to strengthen profitability
and competitiveness. Understanding that corporate governance can be effective in
reinvigorating the Japanese economy, the government has passed relevant laws and
has readied the frameworks for promoting its support by corporations.
Anritsu has been highly evaluated by third parties and has been selected to receive
the Corporate Value Improvement Award granted by the Tokyo Stock Exchange. This
selection is based on Anritsu’s adoption of an external checking system and its initia-
tives in raising management transparency as well as the high percentage of its shares
held by non-Japanese investors.
I believe that the job of directors within the corporate governance framework is to
maximize the corporate value of Anritsu in the aggregate for its stakeholders, or, in
other words, all who have relationships with Anritsu. This is because Anritsu is support-
ed by many people who highly evaluate it, including its employees, business partners,
the community, shareholders, and others. Each of these groups obtains benefits from
their transactions and other relationships with Anritsu, and they impart optimum value
to Anritsu as a leading company in its field.
As a further corporate governance initiative, in June 2015, Anritsu made the transi-
tion to a Company with an Audit Committee. I, too, have received the confidence of
shareholders and have been appointed as a Director and Audit Committee member.
My role as a Director is to check whether the Company is being managed properly as
evidenced by its internal control system and to “put on the brakes,” if necessary, and,
also to become an “axle” enabling management to robustly take up the challenges of
business execution. The new system is designed to increase flexibility in performing this
role. This is a heavy responsibility, and I intend to earnestly work to secure and benefit
Anritsu’s valuable corporate assets, its employees, customers, the community, and all
shareholders.
Message from an Outside Director
Takaya SekiDirector (Outside Director) (Representative Director, Corporate Practice Partners, Inc.)
Anritsu Integrated Reporting 2015 25
Corporate Social Responsibility (CSR) Management
L Towards the Achievement of Four CSR GoalsAt Anritsu, we drew up the Anritsu Concept for CSR
Activities in 2006, to identify CSR goals for the mid-to-long
term in our activities. We share the four CSR goals involved
with all our stakeholders, and we intend to make this future
concept a reality, by taking responsibility for progress with
our mid-term business plans, GLP2017 and 2020 VISION.
Since we specified these four CSR goals, we have reviewed
them whenever necessary, in terms of priority issues and
objectives, to take account of changes in the business envi-
ronment and society’s expectations. We also disclose a broad
range of information, including the state of progress with
our initiatives to achieve sustainable growth, which will
benefit all members of society as well as the Anritsu Group.
Basic Approach to CSR
The Anritsu Group fulfills its corporate responsibilities in economic, social, and environmental terms
through CSR in its business activities, based on compliance with laws, ethics, and social expectations,
under its business philosophy of “Sincerity, Harmony, and Enthusiasm.” In addition, the Anritsu Group
aims to increase its corporate and brand value by building even better relationships with all stakeholders
through ongoing communication.
Materiality Assessment Methods and Results
In 2008, Anritsu conducted a materiality assessment
based on discussions with 30 key people in the Group,
regarding 142 items of corporate behavior expected by
society. These have been classified by stakeholder, with
due consideration for objectivity and completeness.
As a result of that assessment, among the 142 items,
the 12 items shown in the red sector were recognized
as having particular importance, and designated as
priority issues for the Anritsu Group.
• Service to customers • Solution for social issues• Establishment of compliance• Promotion of risk management• Respect for human rights and
promotion of diversity• Promotion of environmental
management• Communication with stakeholders
• Promotion of social contribution activities
• Supply chain management
Communication is effective
Management is effective
Top priority
Issues with high degree of importance
Importance to Anritsu
Imp
ort
ance
to
sta
keh
old
ers
• Proactive response to social issues• Human resource development• Labor safety and health
CSR Goals of Anritsu
Goal 1Contributing to Build a Safe,
Secure,and Comfortable Society1. Service to Customers
2. Solutions for Social Issues3. Response to Social Expectations
Goal 2Maintaining Harmony with the Global Socio-Economy
4. Establishment of Compliance5. Promotion of Risk Management
6. Supply Chain Management7. Respect for Human Rights and Promotion of Diversity
8. Human Resource Development9. Labor Safety and Health
10. Promotion of Social Contribution Activities
Goal 3Promoting Global
Environmental Protection11. Promotion of
Environmental Management
Goal 4Promoting Communications12. Communications with Stakeholders
1. To be Global Market Leader
• Create uniquely Anritsu-like corporate value
• Build a world-class, strong, profit-generating platform
2. Create New Business by Emerging Business
• Demonstrate cutting-edge tech in new business fields
Indicators FY2014 FY2017
Revenue ¥98.8 billion ¥120.0 billion
Operating profit
¥10.9 billion ¥17.0 billion
Profit ¥7.9 billion ¥13.0 billion
ROE 10.2% 14.0%
ACE* ¥2.4 billion ¥8.0 billion
GLP2017
* ACE (Anritsu Capital-cost Evaluation): operating profit after tax-capital cost)
2020 VISION
26 ANRITSU CORPORATION
Helping to Ensure Food Safety and Security
While people’s dietary lifestyles become more fulfilling year by year, a succession of inci-
dents, such as food recalls and inclusion of external contaminants, has also occurred. In
Anritsu’s industrial machinery, detection equipment is provided to identify contaminants
that find their way into food products during manufacture, and to eliminate any defec-
tive products. We also offer the QuiCCA quality management and control system, to
centralize management of quality records in manufacturing. QuiCCA facilitates automat-
ic, comprehensive recording and analysis of information related to the shipping quality of
food products. Moreover, if any abnormality occurs, this system can identify the process
involved, and respond promptly to prevent defective products from being shipped,
helping to ensure food safety and security.
CSR Goal 1: Help to ensure a safe, secure, and comfortable society
Mid-term goals
Priority issue Mid-term goals for 2017
Service to customers At least 90% of customers satisfied
Solution for social issues Establishment of global promotion system
Social expectations Establish KPI regarding solution of social problems as a business and set goals
Related G4 aspects
Economy: Economic performance, presence in communities, procurement practicesSociety (product responsibilities): Safety and health for customers, labeling of products and services, compliance
AEO logoSignaling tester (base station simulator) MD8430A
Solving Network Issues among Customers and Society, to Help Achieve a Sustainable Society
In response to the dramatic evolution of communications technology over the last 120 years, Anritsu has
deployed advanced measurement technology. This, too, will help to achieve a society where people can
“connect anytime, anywhere, safely, securely, and comfortably.”
L Helping to Ensure Reliable Connection, Anytime, Anywhere
In response to the dramatic evolution of communications
technology over the last 120 years, Anritsu has deployed
advanced measurement technology.
This is one way Anritsu will help to achieve a sustainable
society where people can “connect anytime, anywhere,
safely, securely, and comfortably,” by solving network issues
among customers and society as an advanced, reliable pro-
vider of measurement solutions, covering all kinds of wireless
and wireline connection.
As one notable result in 2014, Anritsu conducted a joint
verification using a carrier aggregation modem being devel-
oped by a customer and the MD8430A signaling tester from
Anritsu, succeeding in data communication that bundled three
frequencies for the first time in the
industry. In the LTE-Advanced system,
which is being progressively introduced
worldwide, carrier aggregation, which
achieves high speed by bundling of fre-
quency bands, is a key technology.
L Strict, Efficient Export ManagementAnritsu’s measuring instruments incorporate a full array of
the latest hardware and software technologies. This raises
the possibility that they could be abused for purposes such
as WMD development. Anritsu has designated this as one
of seven key risks in import-export management, and,
accordingly, conducts strict, appropriate management.
Anritsu has acquired certification as an AEO (Authorized
Economic Operator), in line with international standards to
both ensure and facilitate security in international trade, and
has obtained all relevant permits from METI. By implement-
ing a personnel system appropriate to a global importer and
exporter, plus Anritsu’s own management rules, which apply
worldwide, and an information system that enables efficient
risk assessment and inspection,
Anritsu achieves both strict man-
agement that helps to ensure
international security and speedy
responses to customers’ needs.
AutomaticCheckweigher
LAN Switch(Switching Hub)
Metal Detectors, etc.
P Example of system design
Automatic Checker
Mail Server
Mobile Phone
PC
PC
Code Printer/Labeler Code Reader
CameraCamera
HD X-rayInspectionSystems
MetalDetector
Anritsu Integrated Reporting 2015 27
CSR Goal 2: Harmony with the global economy and society
Mid-term goals
Priority issue Mid-term goals for 2017
Establishment of compliance Implementation and continuance of compliance training for all employees
Promotion of risk management Development of centralized system for global risk management and auditing system
Supply chain management PDCA cycle for CSR sourcing strategy and establishment of BCP system for SCM overall
Respect for human rights, promotion of diversity, and human resource development
Due diligence regarding human rights; Diversity in hiring and review of evaluation/compensation system
Labor safety and health Achievement and continuation of zero-accident record
Promotion of social contribution activities
Promotion of social contribution activities at key global centers in four quadrants
Global Value Chain
At all stages of our business activities, from upstream to downstream, Anritsu is supported by a strong
value-chain system.
While working with suppliers to achieve growth and solve social issues, we have reinforced our compli-
ance in the sales phase, implementing strict procedures. To ensure that this value chain can be main-
tained even in emergencies, we also consistently reinforce our BCP initiatives.
L Promotion of Global CSRThe Anritsu Group promotes its CSR activities globally; we
have established a system of regions to deepen communica-
tion with all stakeholders worldwide, and we pursue the
exchange of information, based on an annual schedule.
The following 10 items are reported annually, by the per-
son responsible that year, from each region’s representative
to the CSR/CS Promotion Team at Anritsu’s Head Office.
• CS Activities
• Quality Improvement
• Health and Safety
• Compliance
• Supply Chain
• Information Security
• Protecting Human Rights
• Valuing Employees
• Promotion of Environmental Management
• Conducting Social Contribution Activities
Also, as business becomes increasingly global, even closer
coordination is required among all operational and manage-
ment divisions. Global meetings that connect our Atsugi
Head Office with key centers in Koriyama, the U.S., the EU
(the U.K. and Denmark), and Asia (China) are held on both
regular and ad hoc schedules.
L Business Continuity ManagementFor a manufacturing company, stable sourcing of production
materials is the foundation of BCP. Among the Group’s man-
ufacturing centers, Tohoku Anritsu and Anritsu’s Koriyama
office had anticipated natural disasters, such as earthquakes,
as a major risk before the Great East Japan Earthquake, and
taken steps to ensure BCP.
Following the Great East Japan Earthquake, we compiled a
database of conditions at the centers of our trading partners
(about 2,000 centers), and worked to identify and minimize
emergency-related risks. In addition, we made arrangements
for sharing of this information within Anritsu. Furthermore,
in order to respond to a diverse range of risks, we conduct
simulations that extrapolate anticipated risks globally, and
utilize the experience gained in this way to improve and
reinforce our BCP.
Global training
28 ANRITSU CORPORATION
Corporate Social Responsibility (CSR) Management
L Promotion of DiversityGiven the rapid evolution of business worldwide, we believe
it is important to attract a diverse workforce in terms of
nationality, gender, age, and views on work. This enables us
to develop systems and programs that allow every individual
to demonstrate their strengths in accordance with their life-
style, and to provide safe, secure, and comfortable working
conditions.
Global comparison of women’s advancement
Japan U.S. EMEAAsia and others
Global total
Women as a percentage of the workforce (number of female employees/total number of employees)
Fiscal 2014 13% 30% 21% 26% 19%
Fiscal 2013 13% 30% 22% 26% 19%
Fiscal 2012 17% 31% 25% 31% 22%
Relative weighting of women in executive roles, defining the value for men as 100((Number of female executives/Number of female employees)/(Number of male executives/Number of male employees)
Fiscal 2014 9% 56% 72% 66% 44%
Fiscal 2013 9% 59% 60% 78% 47%
Fiscal 2012 8% 59% 82% 57% 45%
L Due Diligence regarding Human RightsTo ensure that the Anritsu Group continues to earn the trust
of stakeholders, we have designated “responding to human
rights issues” as one CSR strategic issue, and formed a working
group that involves all relevant divisions. In this way, we plan to
globally implement due diligence regarding human rights.
In 2015, we began by specifying and publishing our policy.
L Anti-Corruption InitiativesFor the Anritsu Group, which is engaged in business globally,
preventing bribery and other forms of corruption is recog-
nized as an important issue in terms of compliance.
Accordingly, we take anti-corruption initiatives, to ensure
that our corporate activities are soundly conducted in good
faith and meet the expectations of society. In particular, laws
to prevent bribery in countries such as the U.S. and the U.K.
are stringent, applying to business dealings even outside
those countries. In the U.K., activities by distributors are also
subject to regulation; so, we work to keep our staff informed
through seminars and other training.
The Anritsu Group already includes prohibition of bribery
in its Code of Conduct, but to raise employee consciousness
even further, in 2012, we drew up the Anritsu Group Bribery
Prevention Policy, heightening awareness within the Group
both in Japan and overseas. In addition, we provide anti-
bribery education for sales staff in Japan, who are especially
at risk of inadvertent misconduct.
Anti-corruption initiatives to date
2012Specification of Anritsu Group Bribery Prevention Policy, raising awareness of bribery prohibition in the Anritsu Group in Japan and overseas
2013Production of global case studies, including anti-corruption issues, and support of education
2014Global WBT (Web-based training) on anti- corruption issues, received by 1,435 people
Related G4 aspects
Society (labor practices and decent work): Training, education, diversity, equal opportunity, evaluation of suppliers’ labor practicesSociety (human rights): Non-discrimination, child labor, forced labor, evaluation of suppliers’ human rights recordSociety (social): Anti-corruption initiatives, anti-competitive practices, compliance
Deciding and confirming company policy
Checking and evaluation of results
Corrective measuresConsideration of
measures
Risk analysis
Process of responding to human rights issues
Anritsu Integrated Reporting 2015 29
Promotion of Environmental Management
Anritsu pursues the development and manufacturing of products that are eco-friendly and contributes
to creating prosperous societies where mankind lives in harmony with nature. Anritsu promotes environ-
mental management globally throughout its entire value chain.
L Anritsu’s Environmental ManagementDeveloping corporate environmental management group-
wide, Anritsu further advances its activities toward the
creation of Eco-Office, Eco-Factory, and Eco-Products
with Eco-Minded Employees.
L Eco-MindWe are aware that each and every one of our employees is
part of the life cycle of products, and, in our business activi-
ties, we work to improve the natural environment and aim to
be good corporate citizens who contribute to society.
L Eco-Offices and Eco-FactoriesIn our offices, we work to reduce environmental impact by reduc-
ing consumption of energy and resources, and by practicing 3R*.
In our factories, we work to reduce environmental impact
through energy conservation and 3R, as well as complying with
environmental regulations and minimizing pollution risks.
* 3R: Reduce, reuse, recycle
L Eco-ProductsAs well as considering the environment throughout the
entire life cycle of products, by reducing consumption of
energy and resources and minimizing usage of harmful sub-
stances, we develop products that can help achieve environ-
mental improvements in customers’ usage environments.
CSR Goal 3: Promotion of environmental protection
Mid-term goals
Priority issue Mid-term goals for 2017
Total energy consumption Reduction by at least 3% relative to fiscal 2014 (global Anritsu Group)
Water consumption Reduction by at least 3% relative to fiscal 2014 (global Anritsu Group)
Development of excellent eco-products Raise percentage of eco-products to at least 10% and improve at least 30% in electricity consumption for all products involved
Related G4 aspects
Environment; Energy, water, atmospheric emissions, products and services, compliance, environmental assessment of suppliers
DisposalUse by
customersTransportOverall business activitiesSuppliers
Development of environmentally conscious products (saving energy and resources, reducing harmful substances, beneficial to the environment)
Material procurement
Fuel and energy-related activities not included
in Scope 1 and 2
Transportation Customer useFactories/Offices
Capital assets
Employee business trips
Employee commuting
Waste disposal
Notes: 1. Figures are calculated in accordance with “Basic guidelines on calculating greenhouse gas emissions in the supply chain.” 2. For details, please refer to our 2015 CSR Report.
Identifying and improving environmental impact at all global locations
Disassembly/Waste
CO2 81,393t CO2 3,369t CO2 2,815t CO2 94tCO2 37,508t
CO2 4,114t
CO2 33tLandfill amount to total waste disposal 22%
CO2 1,020t
CO2 (Scope 1) 1,347tCO2 (Scope 2) 14,706tWastewater 79,000m3
Waste products 290tNOx (Japan) 563kgSOx (Japan) 154kgBOD (Japan) 168kg
CO2 11,781t
30 ANRITSU CORPORATION
Corporate Social Responsibility (CSR) Management
Communication with Stakeholders
Anritsu establishes partnerships by proactively disclosing information and dialoging with stakeholders
throughout its business activities.
L External EvaluationAnritsu has been selected for the FTSE4 Good Index Series by
the U.K.-based FTSE Group, a global SRI fund.
In addition, Anritsu has been selected by Morningstar for
the MS-SRI, a socially responsible index fund comprising 150
companies that are listed on the Japanese stock exchange
and have excellent CSR performance.
Going forward, Anritsu will forthrightly address any
needs and issues, and increase its corporate value, as well
as disclosing information in good faith to all stakeholders.
L Relationships with NGOs and NPOsAnritsu has become a sponsor for a project to support out-
door play by children in Fukushima Prefecture, which is man-
aged by Save The Children Japan and implemented by the
NPO Kodomo no Mori Network. In 10 days of play-support
activities between July and October, a total of 26 employees
have taken part as volunteers.
Since the Great East Japan Earthquake, these activities
have been conducted with the aim of giving children chances
to get outdoors and experience nature, to help solve the
problem of fewer opportunities for children to play outside,
especially in Fukushima.
Convivial Meeting for Trading Partners
Anritsu aims to further strengthen relationships with its
trading partners, and meet society’s expectations through-
out the entire supply chain.
On January 21, 2015, we held a convivial meeting for
trading partners, where 287 people from 142 companies in
and outside Japan (127 Japanese and 15 non-Japanese
companies) gathered together. We explained business
opportunities and our strategy in the measurement sector,
in line with the advance of mobile broadband, which is one of Anritsu’s growth drivers; we also shared our sourcing policy and
vision with these trading partners.
In addition, as well as announcing our new logo, we unveiled our Japanese character for this year, chosen among entries by
employees; this character is shin, meaning “new.” We also presented commendations, certificates of appreciation, plaques, and
mementoes to trading partners.
CSR Goal 4: Promotion of environmental protection
Mid-term goalsPriority issue Mid-term goals for 2017
Communication with stakeholders Establishment of communication based on unified principlesOngoing disclosure of sustainability information in conformity with GRI
© Save The Children Japan
Anritsu Integrated Reporting 2015 31
r International Financial Reporting Standards (IFRS)
11-Year Summary of Selected Financial•Nonfinancial DataANRITSU CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31
Financial informationMillions of yen
Thousands of U.S. dollars*1 Millions of yen
2015 2015 2014 2013 2012
For the year: Revenue 98,840 822,638 101,853 94,685 93,623 Cost of sales 46,148 384,086 46,898 43,716 44,398 Gross profit 52,692 438,552 54,955 50,969 49,225 Other revenue and expenses 41,809 347,974 40,833 35,255 35,224 Operating profit 10,883 90,578 14,123 15,714 14,000 Profit from continuing
operations 7,875 65,543 9,319 13,888 7,973
Net cash flows from (used in) operating activities 7,583 63,113 13,793 11,771 16,143
Net cash flows from (used in) investing activities (6,049) (50,345) (5,312) (5,031) (2,175)
Net cash flows from (used in) financing activities (11,235) (93,509) (4,360) (10,036) (2,264)
Free cash flow 1,534 12,768 8,481 6,740 13,968
Depreciation and amortization 3,187 26,525 2,864 2,562 2,469
Capital expenditures 9,613 80,008 5,355 4,563 3,200 R&D expense 13,366 111,244 12,488 10,323 9,842
At year-end: Total assets 126,893 1,056,122 127,150 115,095 111,287 Total equity 78,666 654,732 74,897 64,540 46,818 Cash and cash equivalents 34,916 290,603 43,215 37,690 39,596 Interest-bearing debt 16,065 133,708 18,859 19,417 30,113
U.S. dollars*1 Yen
Earnings per share: Basic earnings per share 55.72 0.46 64.93 98.41 62.17 Diluted earnings per share 55.72 0.46 64.89 97.03 56.33 Cash dividends 24.00 0.20 20.00 20.00 15.00 Equity attributable to owners
of parent 572.04 4.76 522.54 450.36 341.43
Key financial indicators: Operating profit margin (%) 11.0 13.9 16.6 15.0 Return on equity (%)*2 10.2 13.3 25.0 19.5 Anritsu Capital-cost
Evaluation*3 2,454 20,424 4,759 9,495 5,163 Return on assets (%)*4 6.2 7.3 12.1 7.2 Ratio of net assets to
total assets (%) 62.0 58.9 56.1 42.1 Net debt-to-equity ratio
(times)*5 — — — — — Interest coverage ratio
(times)*6 41.7 52.6 34.3 20.8 Dividend payout ratio (%) 43.1 30.8 20.3 24.1 Dividends on equity (%)*7 4.4 4.1 5.1 4.9
Notes: 1. The Anritsu Group has adopted IFRS since the fiscal year ended March 31, 2013 and prepared consolidated financial statements in conformity with IFRS.
2. With amendment of IAS 19, 2013 actual figures have been restated based on the revised accounting policies retrospectively.
Japanese Generally Accepted Accounting Principles (“J-GAAP”) R
Millions of yen2012 2011 2010 2009 2008 2007 2006 2005
For the year: Net sales 93,587 77,853 73,548 83,940 100,486 99,446 91,262 84,040 Cost of sales 49,385 43,033 42,708 52,005 56,474 55,787 55,205 53,666 Gross profit 44,202 34,820 30,840 31,935 44,012 43,659 36,057 30,374 Selling, general and
administrative expenses 29,787 27,826 26,257 31,030 38,656 37,300 31,508 25,512 Operating income 14,415 6,994 4,583 905 5,356 6,359 4,549 4,862
Net income (loss) 10,180 3,069 385 (3,541) (3,901) 1,376 563 1,280
Net cash provided by (used in) operating activities 15,872 9,229 7,970 6,916 6,251 2,488 5,929 9,277
Net cash provided by (used in) investing activities (1,964) (1,432) (499) (1,326) (2,373) 420 (10,945) (1,046)
Net cash provided by (used in) financing activities (2,204) (6,050) 387 (3,848) (6,625) (13,974) 1,761 (9,872)
Free cash flow 13,908 7,797 7,471 5,590 3,878 2,909 (5,015) 8,231
Depreciation and amortization 2,555 2,589 2,980 3,100 3,373 3,600 3,453 3,400 Capital expenditures 3,165 1,550 1,135 2,236 2,791 2,319 2,699 1,870 R&D expense 10,013 9,381 9,388 11,704 14,115 14,072 12,509 10,515
At year-end: Total assets 113,069 99,249 101,188 100,983 124,917 140,395 152,389 142,111 Net assets 54,863 39,906 37,674 37,525 52,845 61,619 60,940 — Cash and cash equivalents 39,596 27,994 26,270 18,538 16,685 19,947 30,870 33,744 Interest-bearing debt 30,336 36,839 42,275 43,606 47,010 53,033 65,590 61,384
Yen
Per share: Net income (loss)
Basic 79.39 24.09 3.02 (27.78) (30.60) 10.79 3.76 9.31 Diluted 71.01 22.08 2.77 — — 9.72 3.39 8.22 Cash dividends 15.00 7.00 — 3.50 7.00 7.00 7.00 7.00 Total net assets 399.56 313.09 295.49 294.29 414.16 483.25 477.51 472.16
Key financial indicators: Operating income margin (%) 15.4 9.0 6.2 1.1 5.3 6.4 5.0 5.8 Return on equity (%)*2 21.5 7.9 1.0 — — 2.2 0.9 2.1
Anritsu Capital-cost Evaluation*3 9,195 1,908 (2,972) (4,937) (750) (1,397) (3,121) (2,230)
Return on assets (%)*4 9.0 3.1 0.4 — — 0.9 0.4 0.9 Ratio of net assets to
total assets (%) 48.5 40.2 37.2 37.1 42.3 43.9 40.0 42.4 Net debt-to-equity ratio (times)*5 — 0.22 0.43 0.67 0.57 0.54 0.57 0.46 Interest coverage ratio (times)*6 28.1 10.0 7.4 1.6 6.5 5.5 4.3 5.3 Dividend payout ratio (%) 18.9 29.1 — — — 64.9 186.2 75.2 Dividends on equity (%)*7 4.2 2.3 — 1.0 1.6 1.5 1.5 1.5
*1 The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ¥120.15 to U.S. $1.00, the approxi-mate exchange rate on March 31, 2015.
*2 Return on equity: Net income / (Net assets - Stock acquisition rights) (IFRS: Profit from continuing operations / (Net assets - Stock acquisition rights)
*3 Anritsu Capital-cost Evaluation: Net operating income after tax - Invested capital cost (IFRS: Net operating profit after tax - Invested capital cost)*4 Return on assets: Net income / Total assets (IFRS: Profit from continuing operations / Total assets)*5 Net debt-to-equity ratio: (Interest-bearing debt - Cash and cash equivalents) / (Net assets - Stock acquisition rights)*6 Interest coverage ratio: (Operating income + Interest and dividends income) / Interest expenses (IFRS: (Operating profit + Interest and dividends income) / Interest expenses)*7 Dividends on equity: Total cash dividends / Net assets (IFRS: Total cash dividends / Total equity)
Non-financial information 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Social: Human resources Number of employees 3,926 3,880 3,771 3,681 3,614 3,589 3,697 3,963 3,990 4,052 3,610Ratio of women in managerial positions globally* Japan 9% 9% 8% 14% 12% 19% 9% 8% 8% — —
Americas 56% 59% 59% 59% 64% 64% 68% 48% 59% — —EMEA 72% 60% 82% 60% 64% 74% 97% 76% 66% — —Asia, other 66% 78% 57% 54% 44% 33% 37% 53% 50% — —World total 44% 47% 45% 48% 48% 50% 52% 44% 45% — —
Safety Number of labor accidents (per one million hours) 0.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.41 0.41 Environmental: Energy usage (crude oil conversion basis) kL World total 7,861 7,894 7,957 8,235 8,903 8,441 8,988 9,741 10,273 10,545 10,359
Water usage (m3) World total 94,931 104,426 110,433 125,291 125,711 122,074 142,601 160,740 157,050 161,064 175,776Excellent eco-products Number of equipment types (cumulative) 32 30 29 28 27 25 22 22 17 13 11
Note: The ratio of women in managerial positions, with the number of males in managerial position as 100 = (Women in managerial positions/total number of women employees) / (Men in managerial positions/ Total male employees)
32 ANRITSU CORPORATION
Japanese Generally Accepted Accounting Principles (“J-GAAP”) R
Millions of yen2012 2011 2010 2009 2008 2007 2006 2005
For the year: Net sales 93,587 77,853 73,548 83,940 100,486 99,446 91,262 84,040 Cost of sales 49,385 43,033 42,708 52,005 56,474 55,787 55,205 53,666 Gross profit 44,202 34,820 30,840 31,935 44,012 43,659 36,057 30,374 Selling, general and
administrative expenses 29,787 27,826 26,257 31,030 38,656 37,300 31,508 25,512 Operating income 14,415 6,994 4,583 905 5,356 6,359 4,549 4,862
Net income (loss) 10,180 3,069 385 (3,541) (3,901) 1,376 563 1,280
Net cash provided by (used in) operating activities 15,872 9,229 7,970 6,916 6,251 2,488 5,929 9,277
Net cash provided by (used in) investing activities (1,964) (1,432) (499) (1,326) (2,373) 420 (10,945) (1,046)
Net cash provided by (used in) financing activities (2,204) (6,050) 387 (3,848) (6,625) (13,974) 1,761 (9,872)
Free cash flow 13,908 7,797 7,471 5,590 3,878 2,909 (5,015) 8,231
Depreciation and amortization 2,555 2,589 2,980 3,100 3,373 3,600 3,453 3,400 Capital expenditures 3,165 1,550 1,135 2,236 2,791 2,319 2,699 1,870 R&D expense 10,013 9,381 9,388 11,704 14,115 14,072 12,509 10,515
At year-end: Total assets 113,069 99,249 101,188 100,983 124,917 140,395 152,389 142,111 Net assets 54,863 39,906 37,674 37,525 52,845 61,619 60,940 — Cash and cash equivalents 39,596 27,994 26,270 18,538 16,685 19,947 30,870 33,744 Interest-bearing debt 30,336 36,839 42,275 43,606 47,010 53,033 65,590 61,384
Yen
Per share: Net income (loss)
Basic 79.39 24.09 3.02 (27.78) (30.60) 10.79 3.76 9.31 Diluted 71.01 22.08 2.77 — — 9.72 3.39 8.22 Cash dividends 15.00 7.00 — 3.50 7.00 7.00 7.00 7.00 Total net assets 399.56 313.09 295.49 294.29 414.16 483.25 477.51 472.16
Key financial indicators: Operating income margin (%) 15.4 9.0 6.2 1.1 5.3 6.4 5.0 5.8 Return on equity (%)*2 21.5 7.9 1.0 — — 2.2 0.9 2.1
Anritsu Capital-cost Evaluation*3 9,195 1,908 (2,972) (4,937) (750) (1,397) (3,121) (2,230)
Return on assets (%)*4 9.0 3.1 0.4 — — 0.9 0.4 0.9 Ratio of net assets to
total assets (%) 48.5 40.2 37.2 37.1 42.3 43.9 40.0 42.4 Net debt-to-equity ratio (times)*5 — 0.22 0.43 0.67 0.57 0.54 0.57 0.46 Interest coverage ratio (times)*6 28.1 10.0 7.4 1.6 6.5 5.5 4.3 5.3 Dividend payout ratio (%) 18.9 29.1 — — — 64.9 186.2 75.2 Dividends on equity (%)*7 4.2 2.3 — 1.0 1.6 1.5 1.5 1.5
*1 The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ¥120.15 to U.S. $1.00, the approxi-mate exchange rate on March 31, 2015.
*2 Return on equity: Net income / (Net assets - Stock acquisition rights) (IFRS: Profit from continuing operations / (Net assets - Stock acquisition rights)
*3 Anritsu Capital-cost Evaluation: Net operating income after tax - Invested capital cost (IFRS: Net operating profit after tax - Invested capital cost)*4 Return on assets: Net income / Total assets (IFRS: Profit from continuing operations / Total assets)*5 Net debt-to-equity ratio: (Interest-bearing debt - Cash and cash equivalents) / (Net assets - Stock acquisition rights)*6 Interest coverage ratio: (Operating income + Interest and dividends income) / Interest expenses (IFRS: (Operating profit + Interest and dividends income) / Interest expenses)*7 Dividends on equity: Total cash dividends / Net assets (IFRS: Total cash dividends / Total equity)
Non-financial information 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Social: Human resources Number of employees 3,926 3,880 3,771 3,681 3,614 3,589 3,697 3,963 3,990 4,052 3,610Ratio of women in managerial positions globally* Japan 9% 9% 8% 14% 12% 19% 9% 8% 8% — —
Americas 56% 59% 59% 59% 64% 64% 68% 48% 59% — —EMEA 72% 60% 82% 60% 64% 74% 97% 76% 66% — —Asia, other 66% 78% 57% 54% 44% 33% 37% 53% 50% — —World total 44% 47% 45% 48% 48% 50% 52% 44% 45% — —
Safety Number of labor accidents (per one million hours) 0.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.41 0.41 Environmental: Energy usage (crude oil conversion basis) kL World total 7,861 7,894 7,957 8,235 8,903 8,441 8,988 9,741 10,273 10,545 10,359
Water usage (m3) World total 94,931 104,426 110,433 125,291 125,711 122,074 142,601 160,740 157,050 161,064 175,776Excellent eco-products Number of equipment types (cumulative) 32 30 29 28 27 25 22 22 17 13 11
Note: The ratio of women in managerial positions, with the number of males in managerial position as 100 = (Women in managerial positions/total number of women employees) / (Men in managerial positions/ Total male employees)
Anritsu Integrated Reporting 2015 33
Management’s Discussion and AnalysisThe Anritsu Group has adopted IFRS since the fiscal year ended March 31, 2013 and prepared consolidated financial statements in conformity with IFRS in fiscal 2012, 2013, 2014, and 2015.
Changes in the Scope of Consolidation
During the fiscal year ended March 31, 2015, the Anritsu
Group comprised 42 consolidated subsidiaries at the end of
the fiscal year.
Revenue and Profit
During the fiscal year ended March 31, 2015, the U.S. econ-
omy continued its recovery trend, although the outlook for
the global economy remained uncertain due to growing geo-
political risk in the Middle East and Eastern Europe and a
slowdown of growth in China. The Japanese economy
showed upward momentum from the expectation of
improved personal consumption through monetary/fiscal
policies and wage hikes.
In the field of communications networks, mobile broad-
band services for smartphones, tablets, and other mobile
devices are expanding rapidly, and as a result, data traffic
over networks is increasing at a steep rate.
LTE (Long-Term Evolution) and LTE-Advanced, a further
expanded LTE, have become widely used, and demand for
development of protocol conformance testing and operator
acceptance testing has increased. In particular, during the fis-
cal year ended March 31, 2015, there were growing needs
for the development of such LTE-Advanced component tech-
nologies as MIMO (Multiple-Input and Multiple-Output: tech-
nology to achieve high speed and greater capacity of wireless
data communication using a number of transmitting and
receiving antennas) and CA (Carrier Aggregation: technology
to achieve greater bandwidth by bundling multiple carriers).
In the manufacturing field, emerging device vendors in China
and India that use reference designs offered by chipset ven-
dors are growing rapidly. In addition, integration between
cellular and non-cellular such as Wi-Fi is developing.
In the mobile-related market, moves aimed at corporate
acquisitions, reorganizations, or mergers are gaining momen-
tum mainly in Europe and the U.S., and the trend of custom-
er investment seems to be fluctuating. In the smartphone
manufacturing market, while the popularity of high-function,
high-priced devices has run its course in the industrialized
nations, low-priced device vendors have made giant strides in
conjunction with the expansion of the emerging markets,
and low-priced mobile service operators (MVNO, Mobile
Virtual Network Operator) are also gaining prominence in the
domestic market. These trends indicate diverse changes in
the market environment.
Amid such business environment, the Anritsu Group car-
ried out strategic investment mainly around development
and customer support, worked to improve competitiveness in
the offering of solutions by responding to international stan-
dards in the process of being updated, verifying interopera-
bility of different communications standards, improving
productivity of devices and chipsets, and enhancing efficiency
of improving wireless infrastructure.
Revenue
During the fiscal year under review, demand for Test and
Measurement business segment equipment for the mobile
market, principally in Asia, continued to be firm, but, in
Japan, the Americas, and Europe, sales were adversely affect-
ed by the impact of realignments in the industry and
restraints on investment. In addition, in the network infra-
structure market and electronics market, demand for test
and measurement equipment was generally weak. As a
result, orders in the segment for the fiscal year amounted to
¥101,084 million (a decrease year on year of 2.7%), and
revenues were ¥98,840 million (a decline of 3.0%).
Revenue by Region and Overseas Revenue Ratio(Millions of yen) (%)
120,000
60,000
30,000
02011 2012 2013 2014 2015
90,000
80
40
20
0
60
L Japan L Americas L EMEA L Asia and Others (Left scale)
P Overseas Revenue Ratio (Right scale)
Cost of Sales and Gross Profit
Cost of sales decreased ¥750 million, or 1.6%, to
¥46,148 million. Cost of sales as a percentage of total
revenue was 46.7%, or about the same as in the previous
fiscal year. Gross profit decreased ¥2,263 million, or
4.1%, to ¥52,692 million. The gross margin amounted
to 53.3%.
34 ANRITSU CORPORATION
Selling, General and Administrative (SG&A) Expenses
and Operating Profit
SG&A expenses increased 3.4% over the previous fiscal year,
to ¥29,606 million.
Research and development (R&D) expenses rose 5.8%, to
¥12,940 million, reaching 13.1% of consolidated total reve-
nue. As a result of the above factors, operating profit
declined 22.9%, or ¥3,240 million, to ¥10,883 million. The
operating margin was 11.0%.
Other income rose from ¥522 million in the previous fiscal
year to ¥1,017 million.
SG&A Expenses
Millions of yen YoY (%)Year ended March 31 2015 2014
Personnel expenses ¥18,340 ¥18,226 0.6
Travel and transportation expenses 1,985 1,876 5.8
Advertising expenses 1,892 1,801 5.0
Depreciation and amortization expenses 1,004 722 39.1
Others 6,385 5,996 6.5
Operating Profit and Operating Profit Margin(Millions of yen) (%)
16,000
8,000
4,000
02011 2012 2013 2014 2015
12,000
20
10
5
0
15
L Operating Profit (Left scale)
P Operating Profit Margin (Right scale)
Profit before Taxes and Profit
Other expenses decreased from ¥506 million to ¥280 million.
Financial income increased from ¥687 million to ¥1,260 mil-
lion, and financial costs amounted to ¥635 million.
As a result, profit before tax declined 18.6%, to ¥11,592
million from the previous fiscal year. The effective tax rate
was 32.1% and income taxes amounted to ¥3,717 million.
Profit decreased ¥1,444 million, to ¥7,875 million.
Comprehensive income fell ¥1,604 million, to ¥11,898 mil-
lion, and basic earnings per share were ¥55.72.
Cost of Sales, Expenses, and Profit as a Percentage of Revenue
%
Year ended March 31 2015 2014 2013
Revenue 100.0 100.0 100.0
Cost of sales 46.7 46.0 46.1
Gross profit 53.3 54.0 53.8
SG&A expenses 30.0 28.1 25.7
R&D expenses 13.1 12.0 10.7
Profit 8.0 9.1 14.7
Shareholder Return Policies
Dividend Policy
The Company’s basic policy for returning profits to its share-
holders is to distribute profits in accordance with its consoli-
dated performance and by taking into account the total
return ratio.
With regard to dividends, while taking the basic approach
of raising dividends on equity (DOE) in accordance with the
increase in consolidated profits for the fiscal year, the
Company aims at a consolidated dividend payout ratio of
25% or more. The Company’s basic policy is to make distri-
butions of dividends, twice a year, consisting of a fiscal year-
end dividend and an interim dividend by resolution of the
General Meeting of Shareholders and by approval of the
Board of Directors.
The Company intends to carry out the purchase of treasury
stock appropriately as necessary, by taking into account its
financial situation, the trends in stock prices, and other fac-
tors, in an effort to execute capital policies that respond flexi-
bly to changes in the corporate environment. In the fiscal
year ended March 31, 2015, the Company purchased and
retired ¥5,000 million in treasury stock.
Cash Dividends per Share
The Company’s basic policy is to apply retained earnings to
research and development and capital investment in order to
respond to rapid technological advances and changes in the
market structure. Anritsu plans to pay a year-end dividend of
¥12.0 per share, and total dividends for the fiscal year will be
¥24.0 per share for the fiscal year ended March 31, 2015.
Anritsu Integrated Reporting 2015 35
Business Segments
The Anritsu Group classifies operations into the segments of
Test and Measurement, Industrial Automation, and Others.
Test and Measurement
This segment develops, manufactures, and sells measuring
instruments and systems for a variety of communications
applications, and service assurance, to telecom operators,
manufacturers of related equipment, and maintenance and
installation companies around the world.
During the fiscal year ended March 31, 2015, although
performance was steady on the whole in Asia, overall reve-
nue still fell from the same period of the previous year,
affected by customers’ withdrawal from business and
restraint on capital expenditures in other regions.
Additionally, investment in research and development
exceeded the level of the previous year due primarily to
increased development projects, and expenses for enhancing
customer support capabilities overseas also remained at a
high level.
Consequently, segment revenue decreased 3.3%
compared with the previous fiscal year, to ¥73,443 million,
and operating profit decreased 31.3%, to ¥8,944 million.
The Test and Measurement business, which accounts
for approximately 74% of the Anritsu Group’s revenue,
is divided into the following three sub-segments.
1. Mobile
The Mobile sub-segment includes measuring instruments for
mobile phone acceptance testing by mobile phone service
operators, and for design, production, function and perfor-
mance verification, and maintenance of mobile phone hand-
sets by manufacturers of mobile phones, IC chipsets, and
relevant components.
Demand in this sub-segment tends to be influenced by
factors including the technological innovations in mobile
phone services, market penetration, the number of new sub-
scribers as well as new entries in and withdrawals from the
market by mobile phone and chipset manufacturers, and the
number of models and shipments of mobile phones and
chipsets.
Currently, a variety of mobile broadband services offered
through mobile phones that support LTE are available mainly
in developed countries. Leading telecom operators and
mobile phone and chipset manufacturers are pursuing
research and development of LTE-Advanced, the most-
advanced communi cations system, with the aim of providing
more-sophisticated and high-quality services. Moreover,
mobile communications technology is also used for in-vehicle
telecom handsets, and research and development for new
services is progressing. Driven by these efforts, there is ongo-
ing demand for leading-edge measuring solutions related to
measuring systems that perform conformance testing and
interoperability testing.
On the other hand, in the emerging countries, including
China and India, smartphones using the third-generation
(3G) mobile system in affordable price ranges have become
widespread at an explosive pace due to improved living stan-
dards created from economic growth. Especially in China,
many new mobile phone manufacturers have emerged on
the back of broad use of TD-LTE and expansion of related
markets. Demand is also growing for measuring solutions for
the efficient manufacturing of mobile phones.
Anritsu is continuing to develop and launch competitive
solutions to meet the demand for the leading-edge measur-
ing solutions and measuring equipment for mobile phone
manufacturing. As for the measuring solutions, the Company
is working to further expand business in the mobile market
by promptly offering functional updates in line with the
evolution of communications standards.
2. Network Infrastructure
The Network Infrastructure sub-segment includes network
construction maintenance, monitoring and service quality
assurance solutions for wireline and wireless service provid-
ers, and solutions for communications equipment manufac-
turers in areas including design, production, and testing.
In this sub-segment, with the increasing popularity of
broadband networks, service offerings are developing to
include not only music and video distribution but also cloud
computing services. Along with this, access to the Internet
through mobile terminals is rising rapidly, and as a result,
data traffic is increasing, thus bringing stronger demand for
higher-speed networks.
With the increasing popularity of mobile broadband net-
works, the use of cloud computing services is increasing, not
only for personal application such as music and video distri-
bution, but also for business. Accompanying this growth,
data traffic continues to expand rapidly, and advanced tele-
com operators and equipment manufacturers pursuing
broadband networks are commercializing 100Gbps services
and concentrating on research and development of 400Gbps
36 ANRITSU CORPORATION
Management’s Discussion and Analysis
network equipment. Moreover, efficiently dense base station
networks are being promoted by integrating and using wire-
line and wireless network technology in order to improve
connectivity from mobile phones. Along with this, demand is
growing for measuring solutions that optimize wireline and
wireless technology depending on the intended use. Demand
for high-speed data communication equipment is also
expanding due to an increase in construction of data centers
to support cloud computing services. Accompanying with
this, research and development and manufacturing markets
of high-speed optical communications modules are active,
creating additional demand for related measuring solutions.
Anritsu is working to expand business by providing
comprehensive solutions from constructing and monitoring
communications infrastructure to ensuring service quality
in addition to research and development solutions for
telecommunications equipment.
3. Electronics
The Electronics sub-segment includes measuring instruments
widely used in the electronics industry, particularly for design,
production, and evaluation of electronic devices used in tele-
communications network-related communications equip-
ment and other electronic equipment.
Demand in this sub-segment tends to be impacted by the
scale of production of electronic components and products
used in telecommunications equipment, intelligent home
appliances, and automobiles.
Expansion of mobile broadband services and the use of the
IoT (Internet of Things), such as smart meters, are driving
growth in demand for measuring solutions for development
and manufacturing of wireless modules for a broad array of
applications. Furthermore, various wireless systems have been
digitalized for effective use of frequency resources. Demand
for measuring solutions for manufacturing and maintenance
of new systems is also steadily growing. Anritsu will develop
and deliver new products and quality assurance solutions,
and will optimize its supply chain including overseas produc-
tion in order to expand the business and increase profitability.
Industrial Automation
This segment develops, manufactures, and sells production
management and quality management systems, including
pre cision, high-speed auto checkweighers, automatic combi-
nation weighers, and metal detectors, for the food, pharma-
ceutical, and cosmetics industries.
During the fiscal year ended March 31, 2015, business
remained solid in overseas markets especially in North
America. On the other hand, customers in the Japanese mar-
ket maintained a cautious stance towards capital expendi-
tures in the first half of the fiscal year. But this returned to a
favorable investment situation in the second half of the fiscal
year. In addition, Anritsu proactively invested in research and
development and sales promotion for capturing demand for
renewing facilities in Japan and expanding sales in the over-
seas market.
As a result, segment revenue decreased 4.3% compared
with the previous fiscal year to ¥16,198 million and operat-
ing profit decreased 31.8% to ¥824 million.
The Industrial Automation business accounts for about
16% of the Anritsu Group’s revenue. Since approximately
80% of segment revenue is made of food manufacturers,
this segment is substantially influenced by the impact of the
economic growth rate and changes in consumer spending
which would affect results on food manufacturers’ business.
Core products include highly precise checkweighers for
high-speed food processing lines, as well as X-ray and other
inspection systems that detect and remove metal fragments,
stones, and other alien materials in the food processing pro-
cess with high precision. Anritsu’s products have been grown
mainly in the Japanese market. In addition, continuous
investment aimed at expanding market share in Asia, the
United States, and Europe resulted in an overseas revenue
ratio of approximately 40%.
Demand for quality control inspection solutions is expected
to remain firm in every region of the world, as interest
among food manufacturers remains high. To meet this
demand, Anritsu will develop and deliver new products and
quality assurance solutions, and will optimize its supply chain
including overseas production in order to expand the busi-
ness and increase profitability.
Others
This segment comprises information and communications,
devices, logistics, welfare services, real estate leasing, and
other businesses.
During the fiscal year ended March 31, 2015, revenue and
profit increased from the previous fiscal year, partly due to
the results of business restructuring carried out in the previ-
ous fiscal year in the devices business.
Anritsu Integrated Reporting 2015 37
Additionally, impairment losses on buildings and struc-
tures, which had been initially decided to be closed, were
reversed as a result of a decision for the continued use of
them in the head office site due to the partial reexamination
of the plan for utilizing them. As a result, segment revenue
increased 2.5% compared with the previous fiscal year, to
¥9,199 million, and operating profit increased 108.4%, to
¥1,963 million.
Revenue by Business Segment(Millions of yen)
120,000
60,000
30,000
02011 2012 2013 2014 2015
90,000
L Test and Measurement L Industrial Automation L Information and
CommunicationsL Others
Liquidity and Financial Condition
Fund Procurement and Liquidity Management
The Anritsu Group’s funding requirements are mainly for
working capital to purchase materials and cover expenses
incurred in the manufacturing, sales, and marketing of prod-
ucts; for capital investments; and for research and develop-
ment expenses. In addition, during the fiscal year ended
March 31, 2015, funds were required for the construction of
the global headquarters building and the purchase and
retirement of treasury stock. The Group secures sufficient
funding to cover these requirements from retained earnings,
bank borrowings, and capital market funding. To ensure sta-
bility in funding, the Anritsu Group arranged for a commit-
ment line of ¥10 billion in March 2014, which is effective
through March 2017. Looking forward, while preparing for
unforeseen financial risks, both domestic and overseas, in a
dramatically changing market environment, the Anritsu
Group will swiftly and flexibly meet its capital requirements
for working capital, regular repayment of long-term borrow-
ings, and business growth.
During the fiscal year ended March 31, 2015, as a result
of bank loan repayment, as of March 31, 2015, the balance
of interest-bearing debt (excluding lease payables) was
¥16.0 billion (compared with ¥18.8 billion at the end of
the previous fiscal year), and the debt-to-equity ratio was
0.20 (compared with 0.25 at the end of the previous fiscal
year); both were substantial improvements. And the net
debt-to-equity ratio was a negative 0.24 (compared with a
negative 0.33 at the end of the previous fiscal year). In addi-
tion, the average turnover ratio on the end-of-period balance
of inventories to revenue was 5.5 times.
The Company will utilize increased cash flow generated by
improvements in ACE (achievement of net operating profit
after tax less an adjustment for the cost of capital) and asset
turnover as well as enhanced capital efficiency resulting from
measures including an internal group cash management sys-
tem to make further reductions in interest-bearing debt, and
improve the debt-to-equity ratio, enhancing shareholders’
equity and fortifying its financial structure.
During the fiscal year ended March 31, 2015, Rating and
Investment Information, Inc. (R&I) upgraded Anritsu’s short-
term debt and long-term debt from the previous fiscal year
to a-1 and to A-, respectively. Anritsu will continue working
to enhance its financial stability in order to improve its debt
rating.
Notes: 1. ACE (Anritsu Capital-cost Evaluation): Net operating profit after tax – Cost of capital 2. Debt-to-equity ratio: Interest-bearing debt / Equity attributable to owners of
parent 3. Net debt-to-equity ratio: (Interest-bearing debt- Cash and cash equivalents) /
Equity attributable to owners of parent
Cash Flow
In the fiscal year ended March 31, 2015, cash and cash
equivalents (hereafter, “net cash”) decreased ¥8,299 million
from the end of the previous fiscal year to ¥34,916 million.
Free cash flow, the sum of cash flows from operating
activities and cash flows from investing activities, was a posi-
tive ¥1,534 million (compared with a positive ¥8,481 million
in the previous fiscal year).
Conditions and factors for each category of cash flow for
the fiscal year are as follows.
• Cash Flows from Operating Activities
Net cash provided by operating activities was ¥7,583 million
(in the previous fiscal year, operating activities provided net
cash of ¥13,793 million). The main factor was an increase in
recording profit before tax while a decrease in payment of
income taxes was reported.
Depreciation and amortization was ¥3,372 million, an
increase of ¥320 million compared with the previous fiscal
year.
38 ANRITSU CORPORATION
Management’s Discussion and Analysis
• Cash Flows from Investing Activities
Net cash used in investing activities was ¥6,049 million (in
the previous fiscal year, investing activities used net cash of
¥5,312 million). This was primarily due to the acquisition of
property, plant and equipment including the global head-
quarters building.
• Cash Flows from Financing Activities
Net cash used by financing activities was ¥11,235 million (in
the previous fiscal year, financing activities used net cash of
¥4,360 million). The cash decrease was mainly due to repay-
ment of long-term borrowings of ¥5,000 million, purchase of
treasury stock of ¥5,000 million, and payment of cash divi-
dends totaling ¥3,153 million (in the same period of the pre-
vious fiscal year, cash dividends were ¥3,225 million). On the
other hand, the cash increase was mainly due to proceeds
from long-term borrowings of ¥2,500 million.
Assets, Liabilities, and Equity
Assets, liabilities, and equity as of March 31, 2015 were as
follows.
Total assets decreased ¥257 million compared with the
end of the previous fiscal year, to ¥126,893 million. While
cash and cash equivalents decreased, property, plant and
equipment and inventories increased.
Total liabilities decreased ¥4,026 million compared with
the end of the previous fiscal year, to ¥48,227 million. This
was primarily due to decreases of bonds and borrowings and
employee benefits in non-current liabilities, and income tax
payables in current liabilities; on the other hand, trade and
other payables in current liabilities increased.
Equity increased ¥3,769 million compared with the end of
the previous fiscal year, to ¥78,666 million. This was mainly
due to increases of other components of equity and retained
earnings while a decrease was due to purchase and retire-
ment of treasury stock of ¥5,000 million.
As a result, the equity attributable to owners of the parent
to total assets ratio was 62.0%, compared with 58.9% at
the end of the previous fiscal year.
* Net working capital = Accounts receivable and other receivables + Inventories – Accounts payable and other payables Net working capital has been recalculated according to the above formula from last fiscal year.
Total Assets and ROA(Millions of yen) (%)
150,000
50,000
02011 2012 2013 2014 2015
100,000
15
5
0
10
L Total Assets (Left scale)
P ROA (Right scale)
Interest Coverage Ratio(Times)
2011 2012 2013 2014 2015
60
20
10
0
40
50
30
Total Equity and ROE(Millions of yen) (%)
80,000
20,000
02011 2012 2013 2014 2015
40,000
40
10
0
20
60,000 30
L Total Equity (Left scale)
P ROE (Right scale)
Anritsu Integrated Reporting 2015 39
Capital Expenditures
The Anritsu Group is concentrating management resources in
areas related to the quality and high performance of commu-
nications networks, including the integration of wireline and
wireless communications, the acceleration of network
speeds, and the increase in network capacity.
The Test and Measurement segment invested mainly in
new product development to respond to technological inno-
vation and completion and cost reduction. The segment also
invested in enhancements related to its business continuity
plan (BCP), including the construction of a new global head-
quarters. In the Industrial Automation segment, investments
were implemented mainly in improving the efficiency of the
manufacturing environment and in upgrading its IT environ-
ment.
The Others segment, within the communications business,
invested mainly in new product development and enhance-
ments to the assessment environment as well as in its IT
infrastructure with the aims of improving operating processes
and supporting marketing activities.
Overview of Capital Expenditures
Millions of yen YoY (%)Year ended March 31 2015 2014
Test and Measurement ¥9,041 ¥4,966 182.0
Industrial Automation 294 191 153.6
Subtotal 9,336 5,158 181.0
Others 276 197 140.4
Total ¥9,612 ¥5,355 179.5
Capital Expenditures(Millions of yen)
10,000
2,000
02011 2012 2013 2014 2015
6,000
8,000
4,000
Research and Development
The Anritsu Group conducts R&D related to the development
of “Original & High Level” products and services in its R&D
centers in Japan, the Americas, and Europe, with the aim of
contributing to the realization of global societies that are
“safe, secure, and comfortable.”
In the Test and Measurement segment, Anritsu Company
(United States), Anritsu Ltd. (United Kingdom), Anritsu A/S
(Denmark), Anritsu Solutions S.r.l. (Italy), and Anritsu
Solutions SK, s.r.o. (Slovakia) are working together to further
realize synergies among their technologies through supple-
menting and complementing each other’s technological
strengths.
The Industrial Automation segment is conducting R&D
within Anritsu Industrial Solutions Co., Ltd.
Accompanying the application of the International
Financial Reporting Standards (IFRS), the Anritsu Group capi-
talized certain of its development investments and presented
these amounts among intangible assets. The breakdown of
research and development investments during the fiscal year,
including those presented in intangible assets, is shown
below.
Research and Development
Millions of yen % of revenueYear ended March 31 2015 2014
Test and Measurement ¥10,189 ¥ 9,669 13.9
Industrial Automation 1,708 1,375 10.5
Others 611 506 6.6
Basic Research 857 938 —
Total ¥13,366 ¥12,488 13.5
40 ANRITSU CORPORATION
Management’s Discussion and Analysis
Principal results of R&D programs in each business segment are as follows.
Business Segment Model Product Application Contribution
Test and Measurement
MT1000A New productsNetwork Master PRO
For assessment of develop-ment, production, construc-tion, maintenance for communications networks and network-related equipment that support transmission volume that is increasing year by year
Contributes to quality enhancement and efficiency of network construction and maintenance through its superior battery operation
MT1100A New productsNetwork Master FLEX
Contributes to increasing quality in all phases from development to mainte-nance, in networks from cutting-edge to legacy types in a single unit
MS2830A Additional functions incorporatedAudio analyzer for signal analyzers
For assessment of reception sensitivity and sound quality of wireless analog signals
Can be used for digital and analog and contributes to increasing quality and efficiency of manufacturing and maintenance
MT8852B Additional functions incorporatedBluetooth test set for Ver. 4.2
For assessment of wireless performance of IoT systems, wearable devices, etc.
Responds promptly to latest standards and contributes to early commercializa-tion of short- distance wireless application equipment
MD8430A Additional functions incorporatedSignaling test compatible with LTE-Advanced
Virtual test environment for cutting-edge mobile net-works
Contributes to improving quality and early commercialization of latest smart-phones that operate on LTE-Advanced
ME7873/ME7834
Additional functions incorporatedConformance test system/Mobile device test platform
Used for testing confor-mance tests to latest stan-dards and carrier acceptance tests
Contributes to improvement in quality in and early commercialization of mobile devices that operate on LTE-Advanced
Industrial Automation
XR75 Series
New productsX-Ray contamination detection unit
Used for quality assurance through detection of foreign matter in food products and pharmaceuticals
Contributes to food safety and security
M5 Series New productsMetal detection unit
Others PureFlow GSX NF7101C
Traffic shaper For increasing compatibility with large-scale networks and conformance with overseas safety standards
Offers safe and secure communications environment worldwide, leading in the cloud environment
SightVisor NC5200
Information viewer equip-ment
Remote monitoring of accidents and disasters
Strengthens remote monitoring device functionality to help bring about a safe and secure society
Management Objectives and Indicators
Anritsu aims to maximize corporate value by managing its
operations with a focus on cash flow. In addition, to evaluate
the added value generated by capital invested, Anritsu uses
an original metric, ACE (Anritsu Capital-cost Evaluation), for
evaluating the results of each business. A target for ROE is
also set as an indicator of the efficiency of capital invested.
To attain its management vision of “Continuous Growth
with Sustainable Superior Profits,” the Anritsu Group pre-
pared its ANRITSU 2020 VISION, which has a time horizon of
10 years (that began in 2010), and has prepared a mid-term
milestone plan entitled Mid-term Business Plan GLP2017.
The principal management targets under this plan are shown
in the following table.
Billions of yen
Year ended March 312014
(Actual)2015
(Actual)2016
(Target)
Revenue 101.9 98.8 103.0
Operating profit 14.1 10.9 11.0
Profit 9.3 7.9 8.0
ACE 4.8 2.4 3.0
ROE (%) 13 10 10
Anritsu Integrated Reporting 2015 41
Outlook and Management Issues for the Year
Ending March 31, 2016
During the fiscal year ending March 31, 2016, the global
economy is expected to recover in the Americas. However,
lingering uncertainties over trends in the European and
Chinese economies and rising geopolitical risks in Eastern
Europe and the Middle East have made the future unpredict-
able. In addition, there is a need for constant and appropri-
ate responses to technological innovations, changes in the
market environment and competitive relationships, and
trends in the financial situation.
In this market environment, the Anritsu Group will under-
take the following measures.
In the core Test and Measurement segment, the Anritsu
Group will work more closely with customers by sharing
development road maps with them and strengthen technical
support to establish a competitive position in the mobile
market, where demand is projected to continue expanding
worldwide. In the network infrastructure market, with the
expansion of base station networks and increased density by
small cells (complementary base stations with low-power
covering a narrow range), the Anritsu Group will globally
provide products that respond to reinforcement of such net-
work infrastructure. In the electronics market, various wire-
less technologies are applied to transportation devices, home
appliances, and social infrastructure as well, and the Anritsu
Group will aim to expand business by providing test and
measurement solutions that have enhanced user conve-
nience in growth fields. The Anritsu Group will also work
aggressively to structure a global procurement system and
strengthen its research and development and customer sup-
port services with the objectives of aggressively expanding its
business activities and achieving further improvements in
profitability.
In the Industrial Automation segment, the Anritsu Group
seeks to optimize the supply chain under the strategy of local
production for local consumption and strengthens product
competitiveness, cost competitiveness, and local engineering
capability in the growing overseas markets, while it develops
the market with a strategy of higher added value and differ-
entiation. The Group is also deepening ties with major global
food manufacturers, and is working on ways of seeking out
new customers.
The Anritsu Group is planning on growth in revenue. In
the Test and Measurement business, revenue mainly derived
from the mobile and network infrastructure markets is
expected to remain at the same level with the fiscal year
ended March 31, 2015. In the Industrial Automation busi-
ness, sales are expected to increase in both domestic and
overseas markets. The outlook for operating profit and profit
shows increases from the fiscal year ended March 31, 2015.
Risk Information
1. Inherent Risks in the Anritsu Group’s Technology
and Marketing Strategies
The Anritsu Group works to deploy its well-developed techno-
logical capabilities to promptly provide cutting-edge products
and services that offer value to customers. However, the rapid
pace of technological innovation in the Anritsu Group’s core
information and communications markets and the Anritsu
Group’s ability to deliver products and services in a timely man-
ner to meet the needs and wants of customers are factors that
have the potential to exert a material impact on the Anritsu
Group’s financial condition and operating results.
2. Market Fluctuation Risk
External factors including changes in the economy or market
conditions and technological innovation affect the profitabili-
ty of product lines the Group develops and have the poten-
tial to exert a significant material impact on the Anritsu
Group’s financial condition and operating results.
Because a high percentage of Test and Measurement seg-
ment revenue is in the telecommunications market, capital
investment trends among telecom operators, telecommuni-
cations equipment manufacturers, and electronic component
manufacturers have the potential to exert a material effect
on business results. Telecom operators are progressively
adopting technologies to handle rapid increases in data
traffic even as they curtail capital investment.
However, they are also increasingly adopting shared open
network use in order to increase service development effi-
ciency. Moreover, business results for the mobile communica-
tions measuring instrument field, the cornerstone of earnings
for the Anritsu Group, are affected by changes in technologi-
cal innovation in mobile phone services, the number of sub-
scribers, and the replacement ratio for mobile phones.
Business results are also affected by factors such as changes
in development methods as seen in the shift to mobile phone
software platforms and response to intensifying price compe-
tition in measuring instruments used in handset production.
42 ANRITSU CORPORATION
Management’s Discussion and Analysis
In the Industrial Automation business, sales to food
manufacturers constitute approximately 80% of revenue.
Economic growth rates, consumer spending, and raw materi-
al price trends have the potential to impact performance,
capital investment, and other issues among food manufac-
turers and materially influence its performance.
3. Global Business Development Risks
The Anritsu Group markets its products globally, and con-
ducts business in the Americas, Europe, Asia, and elsewhere.
In particular, the overseas sales ratio including both the Test
and Measurement business and the Industrial Automation
business is about 73%, and many customers likewise operate
on a global scale.
As a result, economic trends in countries worldwide,
changes in international conditions, compliance with
required laws and regulations, and progress in the Anritsu
Group’s global strategy have a potential to exert a material
impact on the Group’s financial position and results of opera-
tions. In addition, global-scale mergers, acquisitions, and
realignment in the telecommunications industry are changing
the competitive landscape. Significant changes in capital
investment trends that result have the potential to exert a
material impact on the Anritsu Group’s financial condition
and operating results.
4. Foreign Exchange Risk
The Anritsu Group’s sales outside Japan account for approxi-
mately 73% of consolidated revenue. The Anritsu Group
hedges foreign exchange risk using instruments including for-
ward foreign exchange contracts for foreign exchange trans-
actions that occur upon collection of accounts receivable and
other events. However, rapid changes in foreign exchange
rates have the potential to exert a material impact on the
Anritsu Group’s financial condition and operating results.
5. Long-Term Inventory Obsolescence Risk
The Anritsu Group works to provide products and services
that precisely meet customer needs and wants.
However, particularly in the test and measuring instru-
ments market, product lines are subject to rapid change in
technology, which can easily result in obsolescence of prod-
ucts and parts, and cause inventory held for long periods to
lose its value. These factors have the potential to exert a
material impact on the Anritsu Group’s financial condition
and operating results.
6. Risk Related to Deferred Tax Assets
The Anritsu Group applies deferred tax accounting and rec-
ognizes deferred tax assets. Calculation of deferred tax assets
is based on projections that include estimates of future tax-
able profit, and the actual benefit may differ from the projec-
tion. If the tax benefits based on the estimate of future
taxable profit are judged to be unavailable, these deferred
tax assets are written down, which has the potential to exert
a material impact on the Anritsu Group’s financial condition
and operating results.
7. Risk related to Defined-Benefit Pension Plan
The amounts of retirement benefit payments and obligations
incurred in connection with employee defined-benefit pen-
sion plans of the parent company and certain of its subsidiar-
ies are calculated based on assumptions, including discount
rates, made for actuarial calculations and the expected return
on such pension plan assets. If the discount rates and other
assumptions, which were made for the actuarial calculations
of the expected amount of obligations under these
defined-benefit pension plans, undergo change, this has the
potential to exert a material impact on the Anritsu Group’s
financial condition and operating results.
8. Impact of Revisions, Etc., in Accounting Standards
The Anritsu Group voluntarily adopted its financial state-
ments in conformity with IFRS. However, if, in the future,
new accounting principles, tax laws, etc., are applied and/or
changes are made in such regulations, this has the potential
to exert a material impact on the Anritsu Group’s financial
condition and operating results.
9. Risk of Natural Disasters and Other Unexpected
Events
The Anritsu Group operates production and sales activities
globally. Consequently, the occurrence of major earthquakes
or other natural disaster, fire, war, acts of terrorism or vio-
lence could exert a material impact on the Anritsu Group’s
financial condition and operating results by disrupting the
business activities of the Anritsu Group or its suppliers and
customers due to damage to key facilities, or by causing
political or economic instability.
Anritsu Integrated Reporting 2015 43
Consolidated Statement of Financial Position
Millions of yenThousands of U.S. dollars*
End of FY2014 as of
March 31, 2015
End of FY2013 as of
March 31, 2014
End of FY2014 as of
March 31, 2015
AssetsCurrent assets: Cash and cash equivalents ¥ 34,916 ¥ 43,215 $ 290,603 Trade and other receivables 24,812 25,688 206,509 Other financial assets 1,276 1,099 10,620 Inventories 19,191 17,053 159,725 Income tax receivables 206 183 1,715 Other assets 3,726 2,773 31,012 Total current assets 84,127 90,011 700,184
Non-current assets: Property, plant and equipment 26,877 19,748 223,695 Goodwill and intangible assets 2,558 2,023 21,290 Investment property 1,998 2,164 16,629 Trade and other receivables 394 307 3,279 Other financial assets 2,184 2,209 18,177 Investments accounted for using equity method 87 250 724 Deferred tax assets 8,651 10,265 72,002 Other assets 17 173 142 Total non-current assets 42,766 37,139 355,938 Total ¥126,893 ¥127,150 $1,056,122
Liabilities and EquityLiabilitiesCurrent liabilities: Trade and other payables ¥ 11,537 ¥ 8,451 $ 96,022 Bonds and borrowings 6,586 6,899 54,815 Other financial liabilities 82 249 682 Income tax payables 1,785 3,836 14,856 Employee benefits 6,458 7,112 53,749 Provisions 320 291 2,663 Other liabilities 7,749 6,958 64,496 Total current liabilities 34,517 33,796 287,283
Non-current liabilities: Trade and other payables 378 393 3,146 Bonds and borrowings 9,479 11,960 78,893 Other financial liabilities 108 104 899 Employee benefits 1,416 3,323 11,785 Provisions 127 131 1,057 Deferred tax liabilities 362 324 3,013 Other liabilities 1,840 2,222 15,314 Total non-current liabilities 13,710 18,457 114,107 Total liabilities 48,227 52,253 401,390 Equity: Common stock 19,052 19,052 158,568 Additional paid-in capital 28,217 28,192 234,848 Retained earnings 24,566 23,522 204,461 Treasury stock (869) (869) (7,233) Other components of equity 7,673 4,989 63,863 Total equity attributable to owners of parent 78,639 74,886 654,507 Non-controlling interests 27 11 225 Total equity 78,666 74,897 654,732 Total ¥126,893 ¥127,150 $1,056,122
* The U.S. dollar amounts in this report represent translations of Japanese yen, for convenience only, at the rate of ¥120.15 to U.S. $1.00, the approximate exchange rate on March 31, 2015.
44 ANRITSU CORPORATION
Consolidated Statement of Profit or Loss and Other Comprehensive IncomeAs of March 31
Millions of yenThousands of U.S. dollars*
FY2014From April 1, 2014 to March 31, 2015
FY2013From April 1, 2013 to March 31, 2014
FY2014From April 1, 2014 to March 31, 2015
Continuing operations
Revenue ¥98,840 ¥101,853 $822,638
Cost of sales 46,148 46,898 384,086
Gross profit 52,692 54,955 438,552
Other revenue and expenses
Selling, general and administrative expenses 29,606 28,621 246,409
Research and development expense 12,940 12,227 107,699
Other income 1,017 522 8,464
Other expenses 280 506 2,330
Operating profit (loss) 10,883 14,123 90,578
Finance income 1,260 687 10,487
Finance costs 635 580 5,285
Share of profit (loss) of associates and joint ventures accounted for using equity method 84 10 699
Profit (loss) before tax 11,592 14,240 96,479
Income tax expense 3,717 4,921 30,936
Profit (loss) from continuing operations 7,875 9,319 65,543
Profit (loss) 7,875 9,319 65,543
Other comprehensive income
Items that will never be reclassified to profit or loss
Change of financial assets measured at fair value (8) 273 (67)
Remeasurements of defined benefit plans 1,339 1,489 11,145
Total 1,331 1,762 11,078
Items that are or may be reclassified subsequently to profit or loss
Exchange differences on translation 2,692 2,421 22,405
Total 2,692 2,421 22,405
Total of other comprehensive income 4,023 4,183 33,483
Comprehensive income ¥11,898 ¥ 13,502 $ 99,026
Profit (loss), attributable to:
Owners of parent ¥ 7,858 ¥ 9,305 $ 65,402
Non-controlling interests 17 14 141
Total ¥ 7,875 ¥ 9,319 $ 65,543
Comprehensive income attributable to:
Owners of parent ¥11,881 ¥ 13,488 $ 98,885
Non-controlling interests 17 14 141
Total ¥11,898 ¥ 13,502 $ 99,026
Yen U.S. dollars*
Earnings per share
Basic earnings per share ¥55.72 ¥64.93 $0.46
Diluted earnings per share 55.72 64.89 0.46
Anritsu Integrated Reporting 2015 45
Consolidated Statement of Changes in EquityYears Ended March 31
Millions of yen
FY2013 (From April 1, 2013 to March 31, 2014)
Common stock
Additionalpaid-in capital
Retained earnings
Treasury stock
Other components
of equity
Total equity attributable
to owners of parent
Non-controlling
interestsTotal
equity
Balance at April 1, 2013 ¥19,052 ¥28,110 ¥15,953 ¥(867) ¥2,295 ¥64,543 ¥ (3) ¥64,540
Profit (loss) — — 9,305 — — 9,305 14 9,319
Other comprehensive income — — 1,489 — 2,694 4,183 — 4,183
Total comprehensive income — — 10,794 — 2,694 13,488 14 13,502
Stock options granted — 82 — — — 82 — 82
Dividends paid — — (3,225) — — (3,225) — (3,225)
Purchase of treasury stock — — — (2) — (2) — (2)
Dividends to non-controlling interests — — — — — — (0) (0)
Total transactions with owners and other transactions — 82 (3,225) (2) — (3,145) (0) (3,145)
Balance at March 31, 2014 ¥19,052 ¥28,192 ¥23,522 ¥(869) ¥4,989 ¥74,886 ¥11 ¥74,897
FY2014 (From April 1, 2014 to March 31, 2015)
Balance at April 1, 2014 ¥19,052 ¥28,192 ¥23,522 ¥ (869) ¥4,989 ¥74,886 ¥11 ¥74,897
Profit (loss) — — 7,858 — — 7,858 17 7,875
Other comprehensive income — — 1,339 — 2,684 4,023 — 4,023
Total comprehensive income — — 9,197 — 2,684 11,881 17 11,898
Stock options granted — 25 — — — 25 — 25
Dividends paid — — (3,153) — — (3,153) — (3,153)
Purchase of treasury stock — — — (5,000) — (5,000) — (5,000)
Retirement of treasury stock — — (5,000) 5,000 — — — —
Dividends to non-controlling interests — — — — — — (1) (1)
Total transactions with owners and other transactions — 25 (8,153) (0) — (8,128) (1) (8,129)
Balance at March 31, 2015 ¥19,052 ¥28,217 ¥24,566 ¥ (869) ¥7,673 ¥78,639 ¥27 ¥78,666
Thousands of U.S. dollars*
FY2014 (From April 1, 2014 to March 31, 2015)
Balance at April 1, 2014 $158,568 $234,640 $195,772 $ (7,233) $41,524 $623,271 $ 92 $623,363
Profit (loss) — — 65,402 — — 65,402 141 65,543
Other comprehensive income — — 11,144 — 22,339 33,483 — 33,483
Total comprehensive income — — 76,546 — 22,339 98,885 141 99,026
Stock options granted — 208 — — — 208 — 208
Dividends paid — — (26,242) — — (26,242) — (26,242)
Purchase of treasury stock — — — (41,615) — (41,615) — (41,615)
Retirement of treasury stock — — (41,615) 41,615 — — — —
Dividends to non-controlling interests — — — — — — (8) (8)
Total transactions with owners and other transactions — 208 (67,857) (0) — (67,649) (8) (67,657)
Balance at March 31, 2015 $158,568 $234,848 $204,461 $(7,233) $63,863 $654,507 $225 $654,732
Note: Details of Common stock, Additional paid-in capital, Retained earnings, Treasury stock and Other components of equity are described in Note 25 “Total Equity and Other Capital Items.”
46 ANRITSU CORPORATION
Consolidated Statement of Cash FlowsYears Ended March 31
Millions of yenThousands of U.S. dollars*
FY2014 (12 months)
From April 1, 2014 to March 31, 2015
FY2013 (12 months)
From April 1, 2013 to March 31, 2014
FY2014 (12 months)
From April 1, 2014 to March 31, 2015
Cash flows from (used in) operating activities
Profit (Loss) before tax ¥11,592 ¥14,240 $ 96,479
Depreciation and amortization expense 3,372 3,052 28,065
Impairment loss 86 87 716
Reversal of impairment loss (573) — (4,769)
Interest and dividends income (207) (159) (1,723)
Interest expenses 194 271 1,615
Loss (Gain) on disposal of property, plant and equipment 78 10 649
Decrease (Increase) in trade and other receivables 1,454 (737) 12,102
Decrease (Increase) in inventories (869) (197) (7,233)
Increase (Decrease) in trade and other payables (1,118) (349) (9,305)
Increase (Decrease) in employee benefits (284) 854 (2,364)
Other, net (1,875) (792) (15,605)
Sub Total 11,850 16,281 98,627
Interest received 130 127 1,082
Dividends received 84 50 699
Interest paid (182) (254) (1,515)
Income taxes paid (4,460) (2,942) (37,120)
Income taxes refund 161 531 1,340
Net cash flows from (used in) operating activities 7,583 13,793 63,113
Cash flows from (used in) investing activities
Payments into time deposits (1,278) (1,182) (10,637)
Proceeds from withdrawal of time deposits 1,312 125 10,920
Purchase of property, plant and equipment (5,013) (4,771) (41,723)
Proceeds from sale of property, plant and equipment 24 10 200
Purchase of other financial assets (5) (5) (42)
Proceeds from sale of other financial assets — 5 —
Proceeds from sale of investments accounted for using equity method 222 — 1,848
Proceeds from government grants 117 1,434 974
Other, net (1,428) (928) (11,885)
Net cash flows from (used in) investing activities (6,049) (5,312) (50,345)
Cash flows from (used in) financing activities
Net increase (decrease) in short-term borrowings (355) — (2,955)
Proceeds from long-term borrowings 2,500 — 20,807
Repayments of long-term borrowings (5,000) (600) (41,615)
Purchase of treasury stock (5,000) (1) (41,615)
Dividends paid (3,153) (3,225) (26,242)
Other, net (227) (535) (1,889)
Net cash flows from (used in) financing activities (11,235) (4,360) (93,509)
Effect of exchange rate change on cash and cash equivalents 1,402 1,404 11,669
Net increase (decrease) in cash and cash equivalents (8,299) 5,525 (69,072)
Cash and cash equivalents at beginning of period 43,215 37,690 359,675
Cash and cash equivalents at end of period ¥34,916 ¥43,215 $290,603
Anritsu Integrated Reporting 2015 47
Glossary
Term Description
3GPP (3rd Generation Partnership Project)
A project for developing third-generation (3G) mobile phone system standards that is currently developing international standards for LTE and LTE-Advanced.
5G Fifth-generation mobile communications system. Positioned as the successor specifications to fourth-generation (4G) mobile communications systems, 5G will be the next method of mobile communications.
GCF (Global Certification Forum)
An association that sets operating standards for networks and certification testing standards for mobile terminals to ensure the global interoperability of terminals. GCF certified measurement systems and measurement items guarantee that test performance (measurement procedures and measurement accuracy) is in conformance with conditions required for certifi-cation testing for mobile terminals.
IoT Stands for the “Internet of Things.” IoT will not only allow computers and other communications devices to interact but also will give communications functions to manufacturing equipment in factories, appliances, and virtually all other things in the world around us. This will give these “things” interactive communications functions when connected with the Internet and will facilitate automatic control and remote measurement.
LTE Long-Term Evolution. High-speed mobile service that enables data communication at 5 to 10 times the speed of 3G mobile phone and telecommunications services.
FDD-LTE A high-speed mobile communications system that employs Frequency-Division Duplexing (FDD) to separate a frequency band into transmission and reception portions to allow concurrent communication in both directions.
TDD-LTE A high-speed mobile communications system that employs Time Division Duplexing (TDD) to separate transmission signals and reception signals on the same frequency by short time intervals to enable alternate communication in both directions.
LTE-Advanced (LTE-A) Fourth-generation (4G) mobile communications standard approved by the International Telecommunication Union (ITU). The goal is to run faster than LTE, which is becoming popular globally, using new technology such as carrier aggregation. The 3rd Generation Partnership Project (3GPP), which aims for greater functionality via high speeds, is currently setting the international standard.
M to M (Machine to Machine)
Machines communicating, controlling, and operating each other without a human intermediary.
MIMO (Multiple-Input and Multiple-Output)
A wireless communications technology that uses multiple antennas at the transmitter and receiver to transmit and receive data at the same frequency axis. Capable of increasing communications speeds, a key technology of LTE-Advanced.
Wi-SUN An international wireless communications standard. SUN is short for “Smart Utility Network,” and the technology is planned for use in transmissions between wireless communications devices in utility meters, such as for gas and electric power.
Conformance Testing/Interoperability Testing
In regions employing 3GPP standards, this testing of the transmission/reception characteristics and performance of mobile terminals, the communications procedures of mobile terminals and base stations, and other items is designed to guarantee the interoperability of the base stations of telecom operators and the mobile terminals of manufacturers.
Carrier Aggregation Technology that enables the combination of multiple allotted frequencies to create a larger virtual bandwidth. The larger the bandwidth, the faster large volumes of data can be transmitted. A key technology of LTE-Advanced.
Connectivity A general term signifying connections between and among mobile devices, etc. and other equipment and devices. This term is used to distinguish such modes as Wi-Fi, Bluetooth, NFC, and other communications modes, from cellular commu-nications. Recently, connectivity has been extended to include automobiles, digital cameras, home appliances, game devic-es, and healthcare devices.
Service Assurance Solutions to assure the performance and service quality of telecom operators and service provider networks, and to raise the efficiency of network administration and operation.
Small Cells A type of station for mobile communications, used typically to supplement the coverage of regular ground stations. Small cell stations have lower output power and are used to cover smaller areas. Small cells supplement macro cells with high output power, and are used to provide coverage to areas such as mountainous regions and buildings that macro cell signals cannot reach. Installations include the interiors of buildings that signals cannot penetrate.
Non-Cellular In contrast to cellular communications methods, such as LTE, W-CDMA, CDMA2000, etc., non-cellular refers to short- distance WLAN (Wireless LAN), Bluetooth, etc.
Mobile Backhaul Transmission network that connects wireless base stations to core networks.
Mobile Fronthaul Transmission network that connects wireless base stations with network centers that aggregate the control and base band functions of mobile base stations.
Life-Cycle Assessment This is a method of calculating the burden of products on the natural environment over their full useful lives (covering sourcing of materials, manufacturing, distribution, usage, and disposal through recycling). At present, the usage of energy at each stage is measured on a CO2 conversion basis.
Reference Design Product blueprint chip maker provides to device vendors for a product that uses the chip maker’s products. Makes develop-ment and production of mobile devices easier.
48 ANRITSU CORPORATION
Head Office: ANRITSU CORPORATION5-1-1 Onna, Atsugi-shi, Kanagawa 243-8555, JapanTel: +81-46-223-1111URL: http://www.anritsu.com
Established: March 1931
Paid-in Capital: ¥19.1 billion
Number of Employees:
3,926 (Consolidated)789 (Stand alone)
Stock Listing: Tokyo (Ticker Symbol No: 6754)
Transfer Agent: Sumitomo Mitsui Trust Bank, Limited 1-4-1, Marunouchi, Chiyoda-ku, Tokyo 100-8233, Japan
Number of Shareholders:
24,232
Rating:(As of May 31, 2014)
Rating and Investment Information, Inc. Long-Term: A-Short-Term: a-1
Authorized Shares: 400,000,000
Issued Shares: 138,115,294
Breakdown of Shareholders:
Major Shareholders
Shareholder NameNumber of Shares
(Thousands)
Percentage of Total Shares Outstanding
BBH FOR MATTHEWS ASIA DIVIDEND FUND 7,304 5.31
The Master Trust Bank of Japan, Ltd. 5,063 3.68
National Mutual Insurance Federation of Agricultural Cooperatives 4,785 3.48
NOMURA BANK (LUXEMBOURG) S.A. S/A NOMURA MULTI CURRENCY JAPAN STOCK LEADERS FUND 4,700 3.42
Japan Trustee Services Bank, Ltd. 4,439 3.23
TAIYO FUND, L.P. 3,615 2.63
Mitsui Sumitomo Insurance Company, Limited 2,668 1.94
JUNIPER 2,544 1.85
SUMITOMO LIFE INSURANCE COMPANY 2,314 1.68
NIPPONVEST 2,250 1.64
Note: The shareholding ratio is calculated by excluding the number of treasury stock (643,983 shares).
Investor Information (As of March 31, 2015)
Financial Institutions27.12%Individuals and
Others26.94%
Foreign Investors40.60%
Other Corporations
2.35%
Securities Companies
2.99%
L Major Subsidiaries
Japan Principal BusinessesAnritsu Industrial Solutions Co., Ltd.
R&D, manufacture, sales, and maintenance of industrial automation equipment
Tohoku Anritsu Co., Ltd.Manufacture of T&M instruments and information and communications equipment
Anritsu Customer Support Co., Ltd.
Calibration, repair, and maintenance of T&M instruments
Anritsu Engineering Co., Ltd. R&D of software
Anritsu Networks Co., Ltd.Manufacture, sales, and maintenance of information and communications equipment
Anritsu Devices Co., Ltd. R&D and manufacture of optical devices
Anritsu Kousan Co., Ltd.Management of facilities, welfare services, and production of catalogs and other materials
Anritsu Real Estate Co., Ltd. Real estate leasingAnritsu Pro Associe Co., Ltd. Operation of shared services center
AT Techmac Co., Ltd.Manufacture and sales of processed products and unit assembly articles
Americas Principal BusinessesAnritsu U.S. Holding, Inc. (U.S.A.)
Holding company for American subsidiaries
Anritsu Company (U.S.A.)R&D, manufacture, sales, and maintenance of measuring and other instruments
Anritsu Instruments Company (U.S.A.)
R&D of T&M instruments
Anritsu Electronics, Ltd. (Canada)
Sales and maintenance of measuring and other instruments
Anritsu Eletrônica Ltda. (Brazil)Sales and maintenance of measuring and other instruments
Anritsu Company S.A. de C.V. (Mexico)
Sales and maintenance of measuring and other instruments
Anritsu Industrial Solutions U.S.A. Inc. (U.S.A.)
Sales and maintenance of industrial automation equipment
EMEA Principal Businesses
Anritsu EMEA Ltd. (U.K.)Sales and maintenance of measuring and other instruments
Anritsu Ltd. (U.K.) R&D of measuring and other instruments
Anritsu GmbH (Germany)Sales and maintenance of measuring and other instruments
Anritsu S.A. (France)Sales and maintenance of measuring and other instruments
Anritsu S.r.l. (Italy)Sales and maintenance of measuring and other instruments
Anritsu AB (Sweden) Sales and maintenance of T&M and other instruments
Anritsu A/S (Denmark)R&D, manufacture, sales, and maintenance of service assurance system and T&M instruments
Anritsu Solutions S.r.l. (Italy) R&D of measuring and other instrumentsAnritsu Solutions S.R.L. (Romania) R&D of measuring and other instrumentsAnritsu Solutions SK., s.r.o. (Slovakia)
R&D of measuring and other instruments
Anritsu Industrial Solutions Europe Ltd. (U.K.)
Sales and maintenance of industrial automation equipment
Asia & Others Principal Businesses
Anritsu Company Ltd. (China)Sales and maintenance of measuring and other instruments
Anritsu Electronics (Shanghai) Co., Ltd. (China)
Maintenance of measuring and other instruments
Anritsu (China) Co., Ltd. (China)Sales and maintenance of measuring and other instruments
Anritsu Company, Inc. (Taiwan)Sales and maintenance of measuring and other instruments
Anritsu Corporation, Ltd. (Korea)
Sales and maintenance of measuring and other instruments
Anritsu Pte. Ltd. (Singapore)Sales and maintenance of measuring and other instruments
Anritsu India Private Ltd. (India)Sales and maintenance of measuring and other instruments
Anritsu Pty. Ltd. (Australia)Sales and maintenance of measuring and other instruments
Anritsu Industrial Solutions (Shanghai) Co., Ltd. (China)
Sales and maintenance of industrial automation equipment
Anritsu Industrial Systems (Shanghai) Co., Ltd. (China)
Manufacture of industrial automation equipment
Anritsu Industrial Solutions (Thailand) Co., Ltd. (Thailand)
Manufacture and maintenance of industrial automation equipment
Anritsu Integrated Reporting 2015 49
On the Front CoverAnritsu’s original company, Annaka Electric Co., Ltd., developed this, the world’s first practical use wireless telephone, the roots of today’s smartphones.
Scene AboveThe entrance to Anritsu’s new global headquarters building symbolizes its limitless growth and vitality.
The paintings on both sides of the entrance door are the work of Soshi Kimata.
ANRITSU CORPORATION5-1-1 Onna, Atsugi-shi, Kanagawa 243-8555, JapanTel: +81-46-223-1111http://www.anritsu.com
Revised in October 2015 Printed in Japan